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Consider the following balance sheet for WatchoverU Savings Incorporated ($ in millions): Assets Liabilities Floating-rate mortgages (currently 10% annually) $ 54 NOW accounts (currently 6%

Consider the following balance sheet for WatchoverU Savings Incorporated ($ in millions):

Assets Liabilities
Floating-rate mortgages (currently 10% annually) $ 54 NOW accounts (currently 6% annually) $ 74
30-year fixed-rate loans (currently 7% annually) 54 Time deposits (currently 6% annually) 17
Equity 17
Total $ 108 $ 108

a. What is WatchoverUs expected net interest income at year-end? b. What will be the net interest income at year-end if interest rates rise by 1 percent? (For all requirements, do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places. (e.g., 32.16))

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