Consider the following balance sheet for Watchover Savings Incorporated (in millions): Assets Liabilities and Equity Floating-rate mortgages (currently 10% per annum) $ 60 Now deposits (currently 6% per annum) $ 105 30-year fixed-rate loans (currently 7% per annum) 90 5-year time deposits (currently 6% per annum) 25 Equity 20 Total $ 150 Total $ 150

a. What is Watchovers 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. (e.g., 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)