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

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 $80$ basis points?

c$.$ The following one$-$year runoffs are expected: $$13$ million for two$-$year T$-$notes, $$23$ million for the eight$-$year T$-$notes. What is the oneyear repricing gap?

d$.$ If runoffs are considered, what is the effect on net interest income at year$-$end if interest rates rise by $80$ basis points?

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Prey

$3$ of $7$

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