Use the following information about a hypothetical government security dealer named J.P. Groman. … 1 answer below »

Use the following information about a hypothetical government security dealer named J.P. Groman. (Market yields are in parentheses; amounts are in millions.) Assets Liabilities and Equity   Cash $ 30   Overnight repos $ 241   1-month T-bills (7.25%) 115   Subordinated debt   3-month T-bills (7.45%) 115   7-year fixed (8.75%) 170   2-year T-notes (7.70%) 70   8-year T-notes (9.16%) 120   5-year munis (floating rate)
     (8.40% reset every six month) 30   Equity 69      Total $ 480   Total $ 480 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.) (Enter your answers in millions. Negative amounts should be indicated by a minus sign.)    Repricing Gap   30 days $  million       91 days million       2 years million     b.

What is the impact over the next 30 days on net interest income if all interest rates rise by 70 basis points? (Input the amount as a positive value.)   Net interest income will (Click to select)decreaseincrease by $ . c.

The following one-year runoffs are expected: $19 million for two-year T-notes, $29 million for the eight-year T-notes. What is the one-year repricing gap? (Enter your answer in millions.)   One-year repricing gap $  million d.

If runoffs are considered, what is the effect on net interest income at year-end if interest rates rise by 70 basis points? (Input the amount as a positive value.)   Net interest income will (Click to select)decreaseincrease by $ .