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Considering the following balance sheet for MMC Bancorp (in millions of dollar): Liabilities/Equity 1. Equity capital (fixed) $ 25.00 Assets 1. Cash and due from
Considering the following balance sheet for MMC Bancorp (in millions of dollar): Liabilities/Equity 1. Equity capital (fixed) $ 25.00 Assets 1. Cash and due from 2. Short-term consumer loans (1-year maturity) 3. Long-term consumer loans (2-year maturity 4. Three-month T-bills $ 6.25 62.50 2. Demand deposits 50.00 31.25 37.50 37.50 50.00 3. One-month CDs 4. Three-month CDs 5. Three-month bankers' acceptances 6. Six-month commercial paper 7. 1-year time deposits 5. Six-month T-notes 6. 3-year T-bonds 7. 10-year, fixed-rate mortgages 8. 30-year, floating-rate mortgages (reset every nine months) 9. Premises 43.75 75.00 25.00 25.00 75.00 25.00 8. 2-year time deposits 50.00 50.00 6.25 $337.50 $337.50 A. Calculate the value of MMC's rate-sensitive assets, rate-sensitive liabilities, and repricing gap over the next year. B. Calculate the expected change in the net interest income for the bank if interest rates rise by 1 percent on both RSAs and RSLs and if interest rates fall by 1 percent on both RSAs and RSLS. C. Calculate the expected change in the net interest income for the bank if interest rates rise by 1.2 percent on RSAs and by 1 percent on RSLs and if interest rates fall by 1.2 percent on RSAs and by 1 percent on RSLS
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