Question: Please complete all the required information... 50 basis point and 75 basis point,, don't miss a thing (16) Use the following information about a hypothetical

 Please complete all the required information... 50 basis point and 75

Please complete all the required information... 50 basis point and 75 basis point,, don't miss a thing

(16) Use the following information about a hypothetical government security dealer named M. P. Jorgan. Market yields are in parentheses, and amounts are in millions. Assets Liabilities and Equity Cash $ 10 Overnight repos 1-month T-bills (7.05%) 75 Subordinated debt 3-month T-bills (7.25%) 75 7-year fixed rate (8.55%) 2-year T-notes (7.50%) 50 8-year T-notes (8.96%) 100 5-year munis (floating rate) (8.20% reset every 6 months) 25 Equity Total assets $335 Total liabilities and equity $170 150 15 $335 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 Tnotes 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 yearend if interest rates increase 50 basis points? Decrease 75 basis points

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