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Question 32 (10 points) The balance sheet of a government security dealer is listed below. Market yields are in parentheses, and amounts are in millions.

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Question 32 (10 points) The balance sheet of a government security dealer is listed below. Market yields are in parentheses, and amounts are in millions. 9 S340 Cash 1-month T-bills (7.05%) 3-month T-bills (7.2590 2-year T-notes (7.50%) 8year T-notes (8.96%) 5-year munas(floating rate) (8.20% reset every 6 months) Total assets Liabilities and Equity Overnight repos Subordinated debt 7-year fixed ratc (8.55%) $20 150 150 100 200 12 300 50 S670 Equity Total liabilities and equity What is the change in NL the planning period in 2 years and interest rates are expected to decrease by 2 30 $670 18 Paragraph BIU THI AA

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