The balance sheet of A. G. Fredwards, a government security dealer, is listed below. Market yields are in parentheses, and amounts are in millions.

a. What is the repricing gap if the planning period is 30 days? 3 month days? 2 years?
b. What is the impact over the next three months on net interest income if interest rates on RSAs increase 50 basis points and on RSLs increase 60 basis points?
c. What is the impact over the next two years on net interest income if interest rates on RSAs increase 50 basis points and on RSLs increase 75 basis points?
d. Explain the difference in your answers to parts (b) and (c). Why is one answer a negative change in NII, while the other is positive?

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Assets Cash 1-month T-bills (7.05 %) 3-month T-bills (7.25%) 2-year T-notes (7.50%) 8-year T-notes (8.96%) 5-year munis (floating rate) Liabilities and Equit $20 Ovemight repos 150 Subordinated debt 150 7-year fixed rate (8.55%) 100 200 S340 300 30 (8.20% reset every 6 months) Total assets -50 Equity Total liabilities and equity S670 $670