Assets A bank has the following balance sheet: Avg. Rate Liabilities/Equity Avg. Rate Rate sensitive $ 450,000.00 7.75% $ 265,000.00 6.25% Fixed rate $ 755,000.00 8.75% $ 805,000.00 7.50% Nonearning / Nonpaying $ 265,000.00 $ 400,000.00 Total $ 1,470,000.00 $ 1,470,000.00 Suppose interest rates fall such that the average yield on rate-sensitive assets increases by 50 basis points and the average yield on rate-sensitive liabilities increases by 63 basis points. a. Calculate the bank's CGAP and gap ratio. b. Assuming the bank does not change the composition of its balance sheet, calculate the resulting change in the bank's interest income, interest expense, and net interest income. C. Explain how the CGAP and spread effects influenced this increase in net interest income. d. Assume Rate sensitive liability increases by 35%. What is bank's CGAP and gap ratio? e. Assuming the bank with new change of the composition of its balance sheet (RSL increased by 25%). Suppose interest rates fall such that the average yield on rate sensitive assets decreases by 25 basis points and the average yield on rate sensitive liabilities decreases by 95 basis points. calculate the resulting change in the bank's interest income, interest expense, and net interest income. f. The bank's CGAP is negative and interest rates decreased, yet net interest income increased. Explain how the CGAP and spread effects influenced this decrease in net interest income