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a woints) Consider the following balance sheet information for TFR Bank. Assume that aations are marked-to-market so that the book values are the same as

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a woints) Consider the following balance sheet information for TFR Bank. Assume that aations are marked-to-market so that the book values are the same as market values. Assets 49 0.0 Deposits 2000 CDs Capital Equity3958 0.0 2.0 Mortgages 1600 1914 Bonds Total 2309 3958 Is the TFR bank adequately capitalized according to the Basel III standards? Specifically, does it meet the CETI (45%) and the Total Risk-Based Capital (%) requirements? Explain and show your calculations. (Assume that all the mortgage loans have a risk weight of 100%, and the bonds have a 0% risk weight). a) Compute the impact on the bank's net worth if rates rise by 1%. Assume that the weighted average durations are 7.18 for the assets, 0.9 for the liabilities, and the interest rate is 2.5%. b) e) How would regulators view this bank? Explain

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