XYZ Bank has issued a one-year, $3 million deposit paying 7.75 percent to fund a one-year loan paying an interest rate of 10 percent. The principal of the loan will be paid in three installments: $1million in four months, $1 million in 8 months and the balance at the end of the year. (20 Marks) a) What would be the effect on annual net interest income of a 3 percent interest rate increase that occurred immediately after the loan was made? b) What would be the effect of a 2 percent decrease in rates that occurred immediately before the loan was made?