PLEASE ANSWER

Consider the following balance sheet for ABC Bank (in millions): $ Liabilities and equity 50 1-year term deposits (curently 6% anually) 50 20 Assets Floating-rate mortgages (curently 10% amally) 10-year fixed-rate loans (Currently 8% ammually, repriced every year) 30-year fixed-rate loans (curently 7%, repriced every year) 30 3-year fixed-rate loans (Currently 7% ammually) 20 20 10-year term deposits (currently 8% anually, repriced every year) Equity 10 Total assets 100 100 Total liabilities and equity a) What is the repricing gap of ABC Bank? b) Csing the cumulative repricing gap model, what is the expected net interest income at year-end for a 1 per cent increase in interest rates? c) What will net interest income be at year-end if interest rates on rate sensitive assets (RSAs) increase by 1 per cent but interest rates on rate sensitive liabilities (RSLs) increase by 50 basis points? Consider the following balance sheet for ABC Bank (in millions): $ Liabilities and equity 50 1-year term deposits (curently 6% anually) 50 20 Assets Floating-rate mortgages (curently 10% amally) 10-year fixed-rate loans (Currently 8% ammually, repriced every year) 30-year fixed-rate loans (curently 7%, repriced every year) 30 3-year fixed-rate loans (Currently 7% ammually) 20 20 10-year term deposits (currently 8% anually, repriced every year) Equity 10 Total assets 100 100 Total liabilities and equity a) What is the repricing gap of ABC Bank? b) Csing the cumulative repricing gap model, what is the expected net interest income at year-end for a 1 per cent increase in interest rates? c) What will net interest income be at year-end if interest rates on rate sensitive assets (RSAs) increase by 1 per cent but interest rates on rate sensitive liabilities (RSLs) increase by 50 basis points