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Consider the following income statement for WatchoverU Savings Inc. (in millions) Assets Liabilities Floating-rate mortgages (currently 13% annually) 30-year fixed-rate loans (currently 10% annually) NOW
Consider the following income statement for WatchoverU Savings Inc. (in millions) Assets Liabilities Floating-rate mortgages (currently 13% annually) 30-year fixed-rate loans (currently 10% annually) NOW accounts (currently 9% annually) Time deposits (currently 9% annually) $ 70 $ 90 32 18 70 UI Total $140 $140 a. What is WatchoverU's expected net interest income at year-end? (Do not round intermediate calculations. 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 1 percent? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. (e.g 32.16)) Net interest income million
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