Amount Rate paid ($million) per annum 450 5% 250 6% Bank Delta has the following balance sheet: Assets Amount Rate earned Liabilities and ($million) per annum Equity 3-month Treasury 250 5.5% 6-month notes certificates of deposit 2-year variable 550 7% 7-year term rate loans (rate deposits (fixed adjusted monthly) rate) 8-year fixed-rate 150 8.5% 30-year loans subordinated debt (fixed rate) Premises (non- 50 Equity earning) 100 7% 200 Total 1000 Total 1000 (i) Calculate Bank Delta's one-year repricing gap. (3 marks) (ii) Assume interest rates are anticipated to increase by 25 basis points for Rate-Sensitive Assets, and increase by 50 basis points for Rate-Sensitive Liabilities in the next 12 months. Calculate the expected change in the bank's Net Interest Income