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

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Use the following information about a hypothetical government security dealer named J.P. Groman. (Market yields are in parentheses; amounts are in millions.) Liabilities and Equity Assets $186 Overnight repos Subordinated debt 7-year fixed (8.6e%) $ 15 Cash 1-month T-bil1ls (7.10%) 3-month T-bills (7.30%) 2-year T-notes (7.55%) 8-year T-notes (9.01%) 5-year munis (floating rate) (8.25% reset every six months) 85 155 85 55 105 34 Equity 30 $375 $375 Total Total 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: $15 million for two-year T-notes, $25 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? Answer is not complete. 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required C Required D Required B 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.) (Enter your answers in millions. Negative amounts should be indicated by a minus sign.) Repricing Gap million 30 days 91 days million million 2 years Required B > Required A c. The following one-year runoffs are expected: $15 million for two-year T-notes, $25 million for the eight-year T-notes. What is th 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D What is the impact over the next 30 days on net interest income if all interest rates rise by 40 basis points? (Input the amount as a positive value.) Net interest income wil 555 8 decrease by c. The following one-year runoffs are expected: $15 million for two-year T-notes, $25 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? O Answer is not complete. Complete this question by entering your answers in the tabs below. Required D Required C Required A Required B The following one-year runoffs are expected: $15 million for two-year T-notes, $25 million for the eight-year T-notes. What is the one-year repricing gap? (Enter your answer in millions.) $ 6,667 million One-year repricing gap Required D >

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