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The balance sheet of a government security dealer is listed below. Market yields are in parentheses, and amounts are in millions. $340 Liabilities and Equity

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The balance sheet of a government security dealer is listed below. Market yields are in parentheses, and amounts are in millions. $340 Liabilities and Equity Overnight repos Subordinated debt 7-year fixed rate (8.55%) $$20 150 150 100 200 Assets Cash 1-month T-bills (7.05%) 3-month T-bills (7.25%) 2-year T-notes (7.50%) 8-year T-notes (8.96%) 5-year munis (floating rate) (8.20% reset every 6 months) Total assets 300 50 $670 Equity Total liabilities and equity 30 $670 What is the change in NII if the planning period is 2 years and interest rates are expected to decrease by 29? Paragraph B 1 U . The balance sheet of a government security dealer is listed below. Market yields are in parentheses, and amounts are in millions. $340 Liabilities and Equity Overnight repos Subordinated debt 7-year fixed rate (8.55%) $$20 150 150 100 200 Assets Cash 1-month T-bills (7.05%) 3-month T-bills (7.25%) 2-year T-notes (7.50%) 8-year T-notes (8.96%) 5-year munis (floating rate) (8.20% reset every 6 months) Total assets 300 50 $670 Equity Total liabilities and equity 30 $670 What is the change in NII if the planning period is 2 years and interest rates are expected to decrease by 29? Paragraph B 1 U

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