One of the most popular interest rate hedging strategies in use today is interest$-$sensitive gap management. Gap management techniques require management to perform an analysis of the maturities and repricing opportunities associated with interest$-$bearing assets and with interest$-$bearing liabilities.

i$)$ What will happen if XYZ bank$$s amount of re$-$priceable assets does not equal its amount of re$-$priceable liabilities?

ii$)$ Assume that the market interest rate fell by $100$ basis points and that the bank had $$200$ million in interest$-$sensitive assets and $$250$ million in interest$-$sensitive liabilities. What will be the impact of an interest rate change on the bank$$s net interest margin?