a) Suppose interest rates in the economy fall from 4% to 1%, what will happen to The Sample Bank USA Banks profit? Show a calculation.

b) Calculate the average duration of assets and liabilities for The Sample Bank USA Bank.

c) Suppose interest rates fall in the economy from 4% to 1%, what will happen to The Sample Bank USA Banks capital relative to assets? Show a calculation.

d) Using the original balance sheet information, what is the leverage ratio for The Sample Bank USA Bank? Briefly explain whether they comply with regulations for the leverage ratio or not.

e) Using the original balance sheet information, if The Sample Bank USA Bank had $10 of profit, what is the banks ROA and ROE?

The following table provides balance sheet information for a bank. You will use this information for Question 3) and 4)