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Consider the following balance sheet for Watchover Savings, Inc. (in millions): Assets Liabilities and Equity Floating-rate mortgages (currently 10% p.a.) $ 80 Now deposits (currently

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

Assets Liabilities and Equity
Floating-rate mortgages (currently 10% p.a.) $ 80 Now deposits (currently 6% p.a.) $ 115
30-year fixed-rate loans (currently 7% p.a.) 100 5-year time deposits (currently 6% p.a.) 24
Equity 41
Total $ 180 Total $ 180

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 2 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 2 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

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