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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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