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Consider the following two banks Bank 1 has assets composed solely of a 10-year, 13.25 percent coupon, $27 million loan with a 13.25 percent yield

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Consider the following two banks Bank 1 has assets composed solely of a 10-year, 13.25 percent coupon, $27 million loan with a 13.25 percent yield to maturity. It is financed with a 10 -year, 10 percent coupon, $27 million CD with a 10 percent yjeid to maturity, Bank 2 has assets composed solely of a 7-year. 13.25 percent, zero-coupon bond with a current value of $2,285,24172 and a maturity value of $5,460,08771 it is financed by a 10 -year, 750 percent coupon, $2,700,000 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 assefs and liabilities, of each bank? (Do not round intermediote calculations. Negative omounts should be indicated by a minus sign. Enter the onswers in dollars, not millions of dollars. Round your answers to 2 decimal places. (e.g. 32.16)

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