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The balance sheet of Key Bank ( KB ) has the following items ( all amounts are in $MM ) . On the Assets side,

The balance sheet of Key Bank (KB) has the following items (all amounts are in $MM). On the Assets side, it reports: 1-year Consumer Loans=$140,30-year Consumer Loans=$125,6-month T-notes=$265,3-year T-bonds=$180, and 30-year Floating-rate Mortgages (adjusted every year)=$120. On the Liabilities and Equity side, it reports: Passbook Savings=$120,3-month CDs=$280,6-month CDs=$140,1-year Time Deposits=$110,5-year Time Deposits=$80, and Equity Capital=$100. What is the impact over the next year on KB's net interest income if interest rates decrease by 75 basis points?
A.
-$0.5 million
B.
-$2.75 million
C.
$0.0375 million
D.
$1.35 million

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