CAN YOU ANSWER PART E$,$ F G AND CHECK C BECAUSE AM NOT SURE IF C IS CORRECT OR NOT. Integrated Mini Case for Chapter $9$: Calculating and Using Repricing & Duration GAP

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 the repricing gap if the planning period is $6$ months? $1$ year? Assume demand

deposits are not rate sensitive$.$

b$.$ What is State Bank's leverage adjusted 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 for both the decrease and increase scenarios.

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?