Interstate Bank's 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) 250 375 1-year CDs (3.5%, 0.95) 5-year CDs (5%, 4.85) 5-year car loans (6%, 3.78) 350 350 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: 300 200 (maturing in 1 year) Fixed-rate mortgages (5.30%, 4.45) 1-year fixed rate (5.55%, 0.92) Subordinated debt: (maturing in 5 years) 275 7-year fixed rate (6.25%, 6.65) 100 Total liabilities Fixed-rate mortgages (5.40%, 18.25) $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. 0 What is the repricing gap if the planning period is six months? One year? (3 marks) (ii) What is Interstate Bank's 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) Interstate Bank's 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) 250 375 1-year CDs (3.5%, 0.95) 5-year CDs (5%, 4.85) 5-year car loans (6%, 3.78) 350 350 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: 300 200 (maturing in 1 year) Fixed-rate mortgages (5.30%, 4.45) 1-year fixed rate (5.55%, 0.92) Subordinated debt: (maturing in 5 years) 275 7-year fixed rate (6.25%, 6.65) 100 Total liabilities Fixed-rate mortgages (5.40%, 18.25) $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. 0 What is the repricing gap if the planning period is six months? One year? (3 marks) (ii) What is Interstate Bank's 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)