Use the following information about a hypothetical government security dealer named J.P. Groman. (Market yields are in parentheses; amounts are in millions.)

Assets			Liabilities and Equity
Cash	$	16	Overnight repos	$	187
1-month T-bills (7.11%)		87	Subordinated debt
3-month T-bills (7.31%)		87	7-year fixed (8.61%)		156
2-year T-notes (7.56%)		56
8-year T-notes (9.02%)		106
5-year munis (floating rate) (8.26% reset every six month)		31	Equity		40
Total	$	383	Total	$	383

a.

What is the repricing or funding gap if the planning period is 30 days? 91 days? 2 years? (Recall that cash is a noninterest-earning asset.)

	Repricing Gap
30 days	$ million
91 days	million
2 years	million

b.

What is the impact over the next 30 days on net interest income if all interest rates rise by 50 basis points? c. The following one-year runoffs are expected: $16 million for two-year T-notes, $26 million for the eight-year T-notes. What is the one-year repricing gap? d. If runoffs are considered, what is the effect on net interest income at year-end if interest rates rise by 50 basis points?