5.8 As a management trainee assigned to the bank's asset/liability management committee, you have been asked to calculate the duration of each of the following loans: (a) $20,000 principal, $4,500 payments per year for five years (b) $20,000 principal, $4,200 payments per year for five years Assume that the bank's current required return on these types of loans is 8 percent. 5.9 The balance sheet of Capital Bank appears as follows: (a) Calculate the duration of this balance sheet. (b) Assuming that the required rate of return is 8 percent, what would be the effect on the bank's net worth if interest rates increased by 1 percent? (c) Suppose that the expected change in net worth is unaceptable to management. What could management do to reduce this change