b and c please

Assets () Duration Liabilities () Duration Variable-rate Money market mortgages 1200 7.5 deposits 1000 0.7 Fixed-rate mortgages 1200 6.0 Savings deposits 2800 2.2 Commercial loans 3000 4.0 Variable-rate CD (>1 year) 1000 1.1 Physical capital 400 Equity 1000 Total 5800 Total 5800 a Make the following assumptions on the runoff of cash flows: fixed-rate mortgages repaid during the year: 10 percent; proportion of savings deposits and variable-rate CD that are rate-sensitive: 20 per cent. Calculate the impact of an increase in interest rates from 3% to 4% on the net interest income of Arrowbank. (5 marks) c) Calculate the impact of a decrease in interest rates from 3% to 2% on the equity of Arrowbank. (7 marks) d) Explain why the calculation in part (c) only provides an estimate of the change in the value of equity