A bank today makes $100 in 3 -year loans with a 16% fixed annual interest rate. It funds the loans today with $100 in 1 -year CDs that currently have a 7% annual interest rate. It has the option of entering an interest rate swap contract. The contract includes a variable rate of 4.5% and a fixed rate of 7.5%. If the bank chooses to hedge its interest rate risk using a $100 notional value swap contract, what is the bank's expected net interest income in the second year if interest rates rise by 1% tomorrow and remain at that level for the next two years? A) $9 B) 12 C) $7 D) $10 E) $6