6. Go back to the discussion of hedging interest rate risk using an interest rate swap on slides 2930 of the lecture notes. In that example, we assumed that deposit costs rise one-for-one with short-term interest rates so that if short term rates rise from 3% to 4% so too deposit rates increase from 3% to 4%. But earlier, on slide 19 we discussed the fact that empirically deposit rates are "sticky". Go back to the discussion on slides 29-30 and assume that deposit rates only increase by 50% of the increase in short term rates. As an example, when short-term rates rise from 3% to 4% now assume that deposit rates increase from 3% to 3%+0.30(4%3%)=3.3%. Recompute the net interest income from a) not using an interest rate swap and b) using an interest rate swap. Which approach sees less volatile net interest income over the five years? Which approach results in higher earnings over all five years (the sum of earnings over the five years)? Why