2. Consider the following bank balance sheet and associated average interest rates. The time frame for rate sensILIVILY is one year. Assets Amount $ Rate % Liabilities and Amount Rate Equity $ % Rate Sensitive $103,300 3.3% Rate Sensitive $91,600 0.8% Fixed Rate Non-Earning 161,400 4.5% Fixed Rate 181,850 2.1% 27,500 Non-Paying 18,750 Liabilities Total $292,200 Total $292,200 a. Calculate the bank's GAP, expected net interest income and net interest margin if interest rates and portfolio composition remain constant during the year. This bank is positioned to profit if interest rates move in what direction? [5 marks] b. Calculate the change in expected net interest income and net interest margin if the entire yield curve shifts 2% higher during the year. Is this consistent with the bank's GAP? [3 marks]