Question Three: You have been provided by the following information about a hypothetical government security dealer named XYZ. Market yields are in parenthesis, and amounts are in millions. Show your work 6 marks Assets Liabilities and Equity Cash $20 demand deposits $20 1-month T-bills 85 3 months CDs $160 3-month T-bills 85 1-year fixed rate time deposit $20 2-year T-notes 3-years fixed rate time deposit $160 8-year T-notes 110 5-years floating rate mortgage (rate adjusted every 6 months) 25 Equity 25 Total assets S? Total liabilities & equity What is the repricing gap if the planning period is 2 years? b. What is the impact over the next 2 years on net interest income if interest rates increased by 1%? If interest rates decreased by 1%? What is the gap ratio for the 2 years planning period? 60 a. c