Refer to the following information about a hypothetical government security dealer to answer the below questions:

Assets: $ 150 million 30 day Treasury bills

$ 275 million 91 day Treasury bills

$ 90 million 180 day municipal notes

$ 350 million 2 year Treasury notes

Liabilities: $ 575 million 14 day repurchase agreements

$ 290 million 1 year commercial paper

22. What is the impact over the next 30 days on the dealer's net interest income if all interest rates rise by 50 basis points?

A) Net interest income will increase by $21.25 million.

B) Net interest income will decrease by $2.125 million.

C) Net interest income will increase by $750,000.

D) Net interest income will decrease by $1.5 million.

E) Net interest income will be unchanged because the government security dealer is hedged.