Q16) Use the following information about a hypothetical government security dealer named M. P. Jorgan. Market yields are in parentheses, and amounts are in millions Assets Liabilities and Equity Overnight repos Subordinated debt 7-year fixed rate (8.55%) $170 150 Cash 1-month T-bills (7.05%) 3-month T-bills (7.25%) 2-year T-notes (7.50%) 8-year T-notes (8.96%) 5-year munis (floating rate) (8.20% reset every 6 months) Total assets $ 10 75 75 50 100 25 $335 Equity Total liabilities and equity 15 $335 2 Dr Taveh Financial Institutions Chapter Eight a. What is the repricing gap if the planning period is 30 days? 3 months? 2 years? Recall that cash a non-interest-earning asset. b. What is the impact over the next 30 days on net interest income if interest rates increase 50 basis points? Decrease 75 basis points? c. The following one-year runoffs are expected: $10 million for two-year Tnotes and $20 million for eight-year T-notes. What is the one-year repricing gap? d. If runoffs are considered, what is the effect on net interest income at yearend if interest rates increase 50 basis points? Decrease 75 basis points