5. Consider the impact of liquidity risk on a bank's capital position in the following example. Consider a hypothetical bank with the following balance sheet. Further assume that all securities are held as HTM and that the current market value is the same as the original book value (cost). a. Suppose the short-term creditors decide not to "rollover" the debt and want their money back and the bank provides it and as a result reduces the size of their balance sheet. Assume the bank can use its cash and sell securities but is unable to sell loans. Also assume that all securities are held as AFS securities and are marked at current market value. What happens to the value of the bank's equity in this case? b. Now suppose financial markets "become volatile" and the bank's securities fall in value by 20%. Suppose also the short-term creditors refuse to "roll over" the debt and want to be repaid and so the bank provides them with the required cash. How would the bank do this (assume the bank can use its cash and sell securities but is unable to sell loans) and what happens to the equity value of the bank? c. Now suppose financial markets "go crazy" and the bank's securities fall in value by 50%. Suppose also the short-term creditors refuse to "roll over" the debt and want to be repaid and so the bank provides them with the required cash. How would the bank do this (assume the bank can use its cash and sell securities but is unable to sell loans) and what happens to the equity value of the bank