3. Given the following balance sheet, analyze the bank's interest rate risk by answering the questions below. Dollars are in millions. a. Calculate the bank's net interest income (NII). (8 points) b. Calculate (i) the one-year repricing gap (CGAP) and (ii) the gap ratio for the bank. (6 points) c. Use the repricing gap model to estimate the change in net interest income ( NII ) if interest rates are expected to increase by 175 basis points next year. Assume that the spread between rates on assets and liabilities remains constant. ( 3 points) d. Estimate NII if interest rates on rate-sensitive assets increase by 200 basis points and interest rates on rate-sensitive liabilities increase 150 basis point. (4 points) e. Why are the answers in c. and d. different? How do these estimates represent the CGAP effect and the spread effect? Explain. (3 points)