Loyola Bank Classifies Its Assets and Liabilities and the Period

Multiple Choice

Loyola Bank classifies its assets and liabilities and the period (maturity buckets) within which they are subject to repricing as on March 31,2015 as follows: $\begin{array} { l c c } \text { (dollars in millions) } & \text { Interest-sensitive } & \text { Interest-sensitive } \\\text { Maturity buckets } & \text { assets } & \text { liabilities } \\\text { One week } & \$ 50 & \$ 45 \\8 \text { to 25 days } & 75 & 70 \\25 \text { to } 40 \text { days } & 60 & 75 \\40 \text { to } 60 \text { days } & 70 & 80 \\60 \text { to } 90 \text { days } & 80 & 70 \\90 \text { to } 180 \text { days } & 180 & 160 \\180 \text { to } 365 \text { days } & 210 & 190\end{array}$
Silvershine bank has $200 million in earning assets and $280 million in liabilities that are subject to an interest rate change each month over the next six months.If market interest rates suddenly rise by 2 full percentage points,what will be approximate change in the net interest income for the bank?

A) $8.2 million
B) -$8.5 million
C) $8.5 million
D) $9.6 million
E) -$9.6 million