Assume that a bank's investment and liability strategies are flexible for the following 4. If a bank issued a CD to a depositor, what happens to its value if rates go up and a. If it is a short-maturity CD? b. If it is a long-maturity CD? c. Is it an asset or liability? 5... If the asset values decline by more than the liability values, how does the balance sheet Balance? 6. If rates are declining, instead, and the asset values increase by less than the liability values, how does the balance sheet balance? 7. How do we measure the impact of interest rate changes on bond / loan values