$*****$ALL INFORMATION NEEDED IS IN THE PICTURE PROVIDED$****$ a$.$ What is State Bank's repricing gap if the planning period is six months? One year? Integrated Mini Case:

State Bank's balance sheet is listed below. Market yields and durations $($in years$)$ are in parenthesis, and amounts are in millions.

a$.$ What is State Bank's repricing gap if the planning period is six months? One year?

b$.$ What is State Bank's duration gap?

c$.$ What is the impact over the next six months on net interest income if interest rates on RSAs increase $50$ basis points and on RSLs increase $35$ basis points? Explain the results.

d$.$ What is the impact over the next year on net interest income if interest rates on RSAs decrease $($increase$)35$ basis points and on RSLs decrease $($increase$)50$ basis points? Explain the results.

e$.$ Use these duration values to calculate the expected change in the value of the assets and liabilities of State Bank for a predicted decrease of $0\mathrm{.}35$ percent in interest rates on assets and $0\mathrm{.}50$ percent on liabilities.

f$.$ What is the change in equity value forecasted from the duration values for decrease of $0\mathrm{.}35$ percent in interest rates on assets and $0\mathrm{.}50$ percent on liabilities?

g$.$ Use the duration gap model to calculate the change in equity value if the relative change in all market interest rates is a decrease of $50$ basis points.

b$.$ What is State Bank's duration gap?

c$.$ What is the impact over the next six months on net interest income if interest rates on RSAs increase $50$ basis points and on RSLs increase $35$ basis points? Explain the results.

d$.$ What is the impact over the next year on net interest income if interest rates on RSAs decrease $($increase$)35$ basis points and on RSLs decrease $($increase$)50$ basis points? Explain the results.

e$.$ Use these duration values to calculate the expected change in the value of the assets and liabilities of State Bank for a predicted decrease of $0\mathrm{.}35$ percent in interest rates on assets and $0\mathrm{.}50$ percent on liabilities.

f$.$ What is the change in equity value forecasted from the duration values for decrease of $0\mathrm{.}35$ percent in interest rates on assets and $0\mathrm{.}50$ percent on liabilities?

g$.$ Use the duration gap model to calculate the change in equity value if the relative change in all market interest rates is a decrease of $50$ basis points.