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Worth 15 Points each part is worth 5 points) DePaul Savings Bank (In million $) Assets Liabilities Floating Rate Mortgage Loans $50 Demand

Worth 15 Points each part is worth 5 points) DePaul Savings Bank (In million $) \ Assets Liabilities \ Floating Rate Mortgage Loans $50 Demand Deposits $70 \ (currently 10% p.a.) (currently 6% p.a.) \ 30-year Fixed rate Loans $50 Time Deposits $20 \ (currently 7% p.a.) (currently 6% p.a.) \ Equity $10 \ What is DePaul Savings Banks expected net interest income at year-end? \ What will be the net interest income at year-end if interest rates rise by 2%? \ Using the cumulative repricing gap model, what is the expected net interest income for a 2% increase in interest rates?

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