B. Consider the following simplified balance sheet of BKM Bank: Tina Shelby, the portfolio manager at BKM, predicts that there would be a general rise in interest rates from the current average of 8% per annum to 9% per annum. It is given that the duration of the total liabilities portfolio is 2.52. Requirements: (i) Considering the durations of total asset and total liabilities portfolio, what impact will this increase in interest rate have on the equity value of BKM? Show the detailed calculations. [3 marks] (ii) Report the adjusted balance sheet after the increase of interest rate (show only total assets, total liabilities and equity). [2 marks] (iii) After the increase in interest rate what happens to the risk profile of BKM Bank? [2 marks]