The assets of a bank consist of $1000 million of corporate loans, $5 million of US government bonds, and $1000 million of uninsured residential mortgages. In addition, the bank has entered 3 transactions with a corporation:

1) A 9-year interest rate swap with a notional principal of $250 million and a current market value of -$3 million.

2) A 4-year interest rate swap with a notional principal of $120 million and a current value of $4million.

3) A 6-month derivative on a commodity with a principal of $60 million that is currently worth $2 million.

a) Determine the risk-weighted assets and the minimum required capital without netting under Basel I

b) Determine the risk-weighted assets and the minimum required capital with netting under Basel II