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Consider the following balance sheet for Watchover Savings Inc. (in millions): Assets Floating-rate mortgages (currently 10p.a.) 30-year fixed-rate loans (currently 75 p.a.) $ 60 90

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Consider the following balance sheet for Watchover Savings Inc. (in millions): Assets Floating-rate mortgages (currently 10p.a.) 30-year fixed-rate loans (currently 75 p.a.) $ 60 90 Liabilities and Equity Now deposits currently 6t p.8.) 5-year time deposits (currently 68 p.a.) Equity Total $105 25 20 $150 Total $150 a. What is Watchover's expected net interest income at year-end? (Enter your answer in millions rounded to 1 decimal place. (e.g.. 32.1)) b. What will be the net interest income at year-end if interest rates rise by 2 percent? (Enter your answer in millions rounded to 1 decimal place. (0.9. 32.1)) c. Using the one-year cumulative repricing gap model, what is the change in the expected net interest income for a 2 percent increase In interest rates? (Negative amount should be indicated by a minus sign. Enter your answer in millions rounded to 1 decimal place. (e.g., 32.1))

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