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10 pts Alexander Bank has the following list of entries on its balance sheet. All figures are in million dollars: - Reserves $10 - Chequable

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10 pts Alexander Bank has the following list of entries on its balance sheet. All figures are in million dollars: - Reserves $10 - Chequable deposits $60 -Loans $60 - Capital $20 - Securities $20 Borrowings $10 1. Write down the balance sheet for Alexander Bank to display all entries appropriately, 2. The manager estimates the average duration of assets to be 3 years, and average duration of liabilities to be 1.5 years. Now market interest rate rises from 2 to 4%. How would this bank's net worth change? Show your calculation for full mark. 3. Suppose the bank's rate-sensitive assets are som andrate sensitive liabilities are $60m. What will happen to its profit when the market interest rate rises Thom 2 Show your calculation for full mark

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