$70 Consider the following balance sheet for Vienna Bank (in millions): Assets Liabilities and Equity Cash $20 Saving deposits (currently 3% p.a.) 5-year floating-rate loans $80 3-year time deposits (currently 6% p.a.) (currently 5% p.a.) Equity Total $100 Total $20 $10 $100 The interest rates of floating-rate loans have been adjusted to market rate just now and will be adjusted every twelve months. Required: (a) Calculate the expected change in net interest income for 1% increase in interest rates, using the one-year cumulative repricing gap model. marks) (b) Identify the type of repricing gap in part (a) and describe its relationship between interest rate and profitability of the bank. (2 marks) (C) Calculate the expected change in net interest income next year if the market interest rate will be increased by 1% and the saving deposit rate is reset to 4.5%. (2 marks) Identify and explain briefly the disadvantage of using repricing gap model to access interest rate risk in this case. (2 marks)