Bank 1 has assets composed solely of a 10-year, 12 percent coupon, $1 million loan with a 12 percent yield to maturity. It is financed with a 10-year, 10 percent coupon, $1 million CD with a 10 percent yield to maturity (YTM). Bank 2 has assets composed solely of a 7-year, 12 percent yield to maturity, zero-coupon bond with a current value of $894,006.20 and a maturity value of $1,976,362.88. It is financed with a 10-year, 8.275 percent coupon, $1,000,000 face value CD with a yield to maturity of 10 percent. All securities except the zero-coupon bond pay interest annually. Using the duration-based Implied Price Volatility (IPV) formula, compute the price changes for each banks assets and liabilities, in response to a 1 percent change in interest rates, from the original scenario. Bank 1 New MVA: _______ New MVL: ________ New Net Worth ___________ Bank 2 New MVA: _______ New MVL: ________ New Net Worth ___________ Repeat step (i) using a 10 percent increase in interest rates, from the original scenario. Bank 1 Old MVA: _______ Old MVL: ________ Old Net Worth: ___________ New MVA: _______ New MVL: ________ New Net Worth ___________ Bank 2 Old MVA: _______ Old MVL: ________ Old Net Worth: ___________ New MVA: _______ New MVL: ________ New Net Worth ___________