Consider the following balance sheet for Watchover Savings, Inc. (in millions):

Assets

Liabilities and Equity

Floating-rate mortgages (currently 13% p.a.)

$

78

Now deposits (currently 9% p.a.)

$

114

30-year fixed-rate loans (currently 10% p.a.)

99

5-year time deposits (currently 9% p.a.)

29

Equity

34

Total

$

177

Total

$

177

a.	What is Watchovers expected net interest income at year-end? (Enter your answer in millions rounded to 2 decimal places. (e.g., 32.16))

Net interest income

$ million

b.	What will be the net interest income at year-end if interest rates rise by 4 percent? (Enter your answer in millions rounded to 2 decimal places. (e.g., 32.16))

Net interest income

$ million

c.	Using the one-year cumulative repricing gap model, what is the change in the expected net interest income for a 4 percent increase in interest rates? (Negative amount should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places. (e.g., 32.16))

Net interest income

$ million