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The following information is from First Savings Association. Assets Par Amount Rate Liabilities Par Amount Rate 2-year commercial loans $600 million 10% 1-year CDs $900
The following information is from First Savings Association.
| Assets | Par Amount | Rate | Liabilities | Par Amount | Rate |
| 2-year commercial loans | $600 million | 10% | 1-year CDs | $900 million | 7% |
| 1-year Treasury bills | $400 million |
| Net Worth | $100 million |
|
a. What is the repricing gap over the 1-year maturity bucket?
b. If all interest rates decrease by 15 basis points, what is the expected impact on the FI's net interest income?
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