Interstate Banks balance sheet is listed below. Market yields and durations (in years) are in parenthesis, and amounts are in millions.

Assets			Liabilities and Equity
Cash	$31		Demand deposits	$253
Fed funds (2.05%, 0.02)	150		Savings accounts (0.5%, 1.25)*	50
3-month T-bills (3.25%, 0.22)	200		MMDAs (3.5%, 0.50)*
8-year T-bonds (6.50%, 7.55)	250		(no minimum balance requirement)	460
5-year munis (7.20%, 4.25)	50		3-month CDs (3.2%, 0.20)	175
6-month consumer loans (5%, 0.42)	250		1-year CDs (3.5%, 0.95)	375
5-year car loans (6%, 3.78)	350		5-year CDs (5%, 4.85)	350
7-month C&I loans (4.8%, 0.55)	200		Fed funds (2%, 0.02)	225
2-year C&I loans (4.15%, 1.65)	275		Repos (2%, 0.05)	290
Fixed-rate mortgages (5.10%, 0.48)			6-month commercial paper
(maturing in 5 months)	450		(4.05%, 0.55)	300
Fixed-rate mortgages (6.85%, 0.85)			Subordinate notes:
(maturing in 1 year)	300		1-year fixed rate (5.55%, 0.92)	200
Fixed-rate mortgages (5.30%, 4.45)			Subordinated debt:
(maturing in 5 years)	275		7-year fixed rate (6.25%, 6.65)	100
Fixed-rate mortgages (5.40%, 18.25)			Total liabilities $2,778
(maturing in 20 years)	355
Premises and equipment	20		Equity	378
Total assets	$3,156		Total liabilities and equity	$3,156

Note: Savings accounts and MMDAs are not core deposits.

(i) What is the repricing gap if the planning period is six months? One year? (3 marks)

(ii) What is Interstate Banks duration gap? (6 marks)

(iii) What is the impact over the next six months on net interest income if interest rates on RSAs increase 50 basis points and on RSLs increase 35 basis points? Explain the results. (4 marks)

(iv) What is the impact over the next year on net interest income if interest rates on RSAs decrease 35 basis points and on RSLs decrease 50 basis points? Explain the results. (4 marks)