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sShow your works please. 5. The balance sheet of MassMutual Insurance shows the following fixed and rate sensitive assets and liabilities. * Rate 8% Assets

image text in transcribedsShow your works please.

5. The balance sheet of MassMutual Insurance shows the following fixed and rate sensitive assets and liabilities. * Rate 8% Assets Rate Sensitive Fixed Rate Non-earning Amount Rate Liabilities Amount $35,000,000 10% Rate $40,000,000 Sensitive $21,000,000 9% Fixed Rate $12,000,000 $ 4,000,000 Equity $ 8,000,000 7% a. What is the repricing gap for the FI? b. What will be the FI's net interest income at year-end if interest rates do not change? c. Suppose short-term interest rates increase by 1 percent. Calculate the change in net interest income after the interest rate increase

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