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answer for all parts, thanks 1 b. Suppose Bank A has $35 million in rate-sensitive assets, 570 million in fixed rate assets, $70 million in

answer for all parts, thanks image text in transcribed
1 b. Suppose Bank A has $35 million in rate-sensitive assets, 570 million in fixed rate assets, $70 million in rate sensitive liabilities, and $35 million in fixed rate liabilities and equity capital. (10 points) What is the value of Bank A's GAP? Calculate the change in Bank A's protit as a result of a decrease in market interest rates of 3 percentage points. Calculate the change in Bank A's profit as a result of an increase in market interest rates of 2 percentage points I If you had believed that rates were going to rise by 2 percentage points (before it actually happened), explain how (if at all) you could have altered Bank A's balance sheet and changed its interest rate risk exposure to improve its subsequent profit performance. d. acer tA T 4 % 1 & 5 6 7 8

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