Consider the following balance sheet for WatchoverU Savings Incorporated ($ in millions): ...
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Finance
Consider the following balance sheet for WatchoverU Savings Incorporated ($ in millions):
Assets
Liabilities
Floating-rate mortgages (currently 10% annually)
$ 67
NOW accounts (currently 6% annually)
$ 87
30-year fixed-rate loans (currently 7% annually)
67
Time deposits (currently 6% annually)
33
Equity
14
Total
$ 134
$ 134
a. What is WatchoverUs expected net interest income at year-end? b. What will be the net interest income at year-end if interest rates rise by 2 percent? (For all requirements, do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places. (e.g., 32.16))
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