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Consider the following two banks: Bank 1 has assets composed solely of a 1 0 - year, 1 1 . 5 0 percent coupon, $

Consider the following two banks:
Bank 1 has assets composed solely of a 10-year, 11.50 percent coupon, $2.0 million loan with a 11.50 percent yield to maturity. It is financed with a 10-year, 10 percent coupon, $2.0 million CD with a 10 percent yield to maturity.
Bank 2 has assets composed solely of a 7-year, 11.50 percent, zero-coupon bond with a current value of $2,092,168.51 and a maturity value of $4,482,504.49. It is financed by a 10-year, 10.75 percent coupon, $2,000,000 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. Enter the answers in dollars, not millions of dollars. Round your answers to 2 decimal places. (e.g.,32.16))
\table[[,Asset Value,Liabilities Value],[,\table[[Before Interest],[Rise]],\table[[After Interest],[Rise]],Difference,\table[[Before Interest],[Rise]],\table[[After Interest],[Rise]],Difference],[Bank 1,,,,,,],[Bank 2,,,,,,]]
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