The manager of the National Bank calculates the rate-sensitive assets to be equal to the Tk. 5 million of securities with maturities less than one year plus the Tk. 50 million of consumer loans with maturities of less than one year. The manager then calculates the rate-sensitive liabilities to be equal to the Tk. 40 millions of commercial paper, all of which has a maturity of less than one year, plus the Tk. 3 million of bank loans maturing in less than a year. If the manager decides to sell off Tk. 10 million of the bank’s consumer loans, half maturing within one year and half maturing in greater than two years and uses the resulting funds to buy Tk. 10 million of Treasury bills, what is the income gap for the bank ? What will happen to profits next year if interest rates fall by 5 percentage points ? How could the National Bank alter its balance sheet to immunize its income from this change in interest rates ?