2. TD Bank has the following assets and liabilities as of year-end. All assets and liabilities are currently priced at par and pay interest annually. Liabilities Assets Amount Annual Amount Annual ($ millions) Rate $40 (S millions) Rate $ 60 3-year GIC 5-year term deposit Equity Total 2-year loans 3-year loans 8% 7% $ 60 $ 30 S 10 6% 8 % Total $100 $100 a. What is the change in the value of its assets if all interest rates decrease by 1 percent? b. What is the change in the value of its liabilities if all interest rates decrease by 1 percent? c. What is the effect on the value of the FI's equity if interest rates decrease by 1 percent? 2. TD Bank has the following assets and liabilities as of year-end. All assets and liabilities are currently priced at par and pay interest annually. Liabilities Assets Amount Annual Amount Annual ($ millions) Rate $40 (S millions) Rate $ 60 3-year GIC 5-year term deposit Equity Total 2-year loans 3-year loans 8% 7% $ 60 $ 30 S 10 6% 8 % Total $100 $100 a. What is the change in the value of its assets if all interest rates decrease by 1 percent? b. What is the change in the value of its liabilities if all interest rates decrease by 1 percent? c. What is the effect on the value of the FI's equity if interest rates decrease by 1 percent