Question One a) A bank has the following balance sheet (in millions) Assets Cash Interbank deposits Mortgage loans Consumer loans Total assets. $20 25 70 70 S185 $175 Deposits Subordinated debts (5 years) Cumulative preferred stocks Equity Total liabilities & Equity S185 The cumulative preferred stock is qualifying and perpetual. In addition, the bank has $30 million in performance-related standby letters of credit to a corporation, $40 million in two years-forward FX contracts that are currently in the money by $1 million, and $300 million in six-year interest rate swaps that are currently out of the money by $2 million. Credit conversion factors follows: e Performance related standby LCs 1-to-5-year FX contracts 1-to-5-year interest rate swaps 5-to-10-year interest rate swaps 50% -5% 0.5% 1.5% Required: ) What are the risk-adjusted on-balance-sheet assets of the bank as defined under the Basel Accord