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Consider the following balance sheet for Watchover Savings Inc. (in millions): Assets Liabilities and Equity Floating-rate mortgages (currently 15t p.a.) 74 Now deposits (currently 118

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Consider the following balance sheet for Watchover Savings Inc. (in millions): Assets Liabilities and Equity Floating-rate mortgages (currently 15t p.a.) 74 Now deposits (currently 118 p.a.) 30-year fixed-rate loans (currently 12 p.a.) $112 97 5-year time deposits (currently 111 p.a) 20 Equity $171 Total 39 Total $171 a. What is Watchover's expected net interest incom 32.16)) e at year-end? (Enter your answer in millions rounded to 2 decimal places 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 decimal places. (e.g., 32.16)) c. Using the one-year cumulative repricing gap model, what is the change in the expected net interest income for a 2 percent in in interest rates? (Negative amount should be indicated by a minus sign. Enter your answer in millions places. (e.g32.16)) a. Net interest income b. Net interest income c. Change in net interest income million million million Prev 1 of 2 Next >

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