Consider the following two banks:

Bank 1 has assets composed solely of a 10-year, 10.5 percent coupon, $1.3 million loan with a 10.5 percent yield to maturity. It is financed with a 10-year, 10 percent coupon, $1.3 million CD with a 10 percent yield to maturity.

Bank 2 has assets composed solely of a 7-year, 10.5 percent, zero-coupon bond with a current value of $1,040,392.04 and a maturity value of $2,092,825.25. It is financed by a 10-year, 6.75 percent coupon, $1,300,000 face value CD with a yield to maturity of 10 percent.

All securities except the zero-coupon bond pay interest annually.

a.	If interest rates rise by 1 percent (100 basis points), what is the difference in the value of the assets and liabilities of each bank? (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16))

	Asset Value			Liabilities Value
	Before Interest Rise	After Interest Rise	Difference	Before Interest Rise	After Interest Rise	Difference
Bank 1	$	$	$	$	$	$
Bank 2	$	$	$	$	$	$