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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.) a. What is
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 noninterest-earning asset.) (Enter your answers in millions. Negative amounts should be indicated by a minus sign.) b. What is the impact over the next 30 days on net interest income if all interest rates rise by 50 basis points? (Input the amount as a positive value.) c. The following one-year runoffs are expected: $11 million for two-year T-notes, $21 million for the eight-year T-notes. What is the one-year repricing gap? (Enter your answer in millions.) d. If runoffs are considered, what is the effect on net interest income at year-end if interest rates rise by 50 basis points? (Input the amount as a positive value.)
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