2. A bank has the following balance sheet: Assets Avg. Rate Rate sensitive $175,000 7.75% Fixed rate 955,000 8.75 Nonearning 665,000 Total $1,795,000 Liabilities/Equity Rate sensitive $525,000 Fixed rate 305,000 Nonpaying 965,000 Total $1,795,000 Avg. Rate 6.25% 7.50 Suppose interest rates fall such that the average yield on rate-sensitive assets decreases by 50 basis points and the average yield on rate-sensitive liabilities decreases by 35 basis points. a) Calculate the bank's repricing GAP (CGAP), gap to total assets and gap ratio. b) Assuming the bank does not change the composition of its balance sheet, calculate the resulting change in the bank's interest income, interest expense, and net interest income. c) Explain how the CGAP and spread effects influenced this change in net interest income