The assets of a bank consist of $500 million of corporate loans, $10 million of US government bonds, and $500 million of uninsured residential mortgages. In addition, the bank has entered 3 transactions with a corporation:

The assets of a bank consist of $500 million of corporate loans, $10 million of US government bonds, and $500 million of uninsured residential mortgages. In addition, the bank has entered 3 transactions with a corporation:

1) A 6-year interest rate swap with a notional principal of $300 million and a current market value of -$3 million.

2) A 4-year interest rate swap with a notional principal of $150 million and a current value of $4million.

3) A 6-month derivative on a commodity with a principal of $20 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 I

please sovle A&Bshow work and explain