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 $ 27 Overnight repos $ 228 1-month T-bills (7.22%) 109 Subordinated debt 3-month T-bills (7.42%) 109 7-year fixed (8.72%) 167 2-year T-notes (7.67%) 67 8-year T-notes (9.13%) 117 5-year munis (floating rate) (8.37% reset every six months) 42 Equity 76 Total $ 471 Total $ 471

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

b. What is the impact over the next 30 days on net interest income if all interest rates rise by 40 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 40 basis points?

PLEASE ANSER USING THIS STRUCTURE (CLEARLY SHOW ANSWERS)

30 days	______? million
91 days	______? million
2 years	______? million

Net income will (increase/decrease) by ______?

One year repricing gap _____ million?

Net interest income will (increase/decrease) by ______?