Use the following information about a hypothetical government security dealer named M. P. Jorgan. Market yields are in parenthesis, and amounts are in millions.

a. What is the repricing gap if the planning period is 30 days? 3 months? 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 interest rates increase 50 basis points? Decrease 75 basis points?
c. The following one-year runoffs are expected: $10 million for two-year T-notes and $20 million for 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 increase 50 basis points? Decrease 75 basis points?

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Liabilities and Equit 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) S10 Ovemight repos $170 75Subordinated debt 75 7-year fixed rate (8.55%) 50 150 100 (8.20% reset every 6 months) -25 Equity Total liabilities & equity 15 Total assets S335