5.3 The ALCO has obtained the following information on the interest rate sensitivity of your bank: The consensus of forecasting is for interest rates to increase by 50 basis points during the ninety days. But a significant minority of forecasters expects rates to fall by 50 basis points. (a) How could the bank eliminate its interest rate risk? (b) What could happen to net interest income if the minority forecast turned out to be the correct one? 5.4 A bank recently purchased at par a $1 million issue of U. S. Treasury bonds. The bond has a duration of three years and pays 6 percent annual interest. How much would the bond's price change if interest rates fell from 6 percent to 5 percent? If interest rates rose from 6 percent to 7 percent? What would your answers be if the duration of the bond was six years