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.)
b. What is the impact over the next 30 days on net interest income if all interest rates rise by 50 basis points?
c. The following one-year runoffs are expected: $ 10 million for two-year T-notes, $ 20 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 50 basispoints?

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Liabilities and Equity CashAsets $ 10 Overnight repos S170 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 75 75 50 100 Subordinated debt 7-year fixed (8.55%) 150 (floating rate) (8.20% reset six months) 25 15 $335 Total $335 Total