1. (12 points) Below is a modified balance sheet of the 1st Bank of Yuma. 2. ( 6 points) Refer to the values calculated for 1st Bank of Yuma in the previous problem. a. (3 pts) Suppose the average duration of assets for the 1st Bank of Yuma is 5 and average duration of liabilities is 1 . Suppose interest rates increase by one percentage point. What is the new value for capital? b. (3 pts) Suppose the gap between rate sensitive assets and rate sensitive liabilities is $30 million. If interest rates increase by one percentage point, what is the change in total profits? 1. (12 points) Below is a modified balance sheet of the 1st Bank of Yuma. 2. ( 6 points) Refer to the values calculated for 1st Bank of Yuma in the previous problem. a. (3 pts) Suppose the average duration of assets for the 1st Bank of Yuma is 5 and average duration of liabilities is 1 . Suppose interest rates increase by one percentage point. What is the new value for capital? b. (3 pts) Suppose the gap between rate sensitive assets and rate sensitive liabilities is $30 million. If interest rates increase by one percentage point, what is the change in total profits