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Consider the following balance sheet for Watchover Savings Incorporated (in millions): Assets Liabilities and Equity Floating-rate mortgages (currently 14 per annum) 30-year fixed-rate loans (currently

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Consider the following balance sheet for Watchover Savings Incorporated (in millions): Assets Liabilities and Equity Floating-rate mortgages (currently 14 per annum) 30-year fixed-rate loans (currently 11% per annum) $ 84 $ 117 102 Now deposits (currently 10% per annum) 5-year time deposits (currently 10% per annum) Equity 27 42 Total $ 186 Total $ 186 a. What is Watchover's expected net interest income at year-end? (Enter your answer in millions rounded to 2 decimal places. (e.g.. 32.16)) 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)) 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)) a. Net interest income million b. Net interest income million O Change in net interest income i million

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