A bank has an average asset duration of 7 years and an average liability duration of 6 years. This bank has total assets of $600 million and total liabilities of $550 million. Currently, market interest rates are 10 percent. If interest rates fall by 2 percent (to 8 percent), what is this bank's change in net worth? Net worth will not change at all Net worth will increase by $16.36 million Net worth will increase by $13.81 million Net worth will increase by $11.81 million Net worth will increase by $17.27 million A bank has an average asset duration of 9 years and an average liability duration of 5 years. This bank has total assets of $1000 million and total liabilities of $850 million. Currently, market interest rates are 5 percent. If interest rates rise by 2 percent (to 7 percent), what is this bank's change in net worth? Net worth will increase by $90.47 million Net worth will decrease by $240.95 million Net worth will not change at all Net worth will increase by $240.95 million Net worth will decrease by $90.47 million A bank has $100 million of investment grade bonds with a duration of 9.0 years. This bank also has $500 million of commercial loans with a duration of 5.0 years. This bank has $300 million of consumer loans with a duration of 2.0 years. This bank has deposits of $600 million with a duration of 10 years and nondeposit borrowings of $100 million with an average duration of 25 years. What is this bank's duration gap? These are all of the assets and liabilities this bank has. This bank has a duration gap of 3.75 years This bank has a duration gap of 15.03 years This bank has a duration gap of 3.55 years This bank has a duration gap of 5.15 years This bank has a duration gap of 14.75 years