Consider the following two banks: Bank 1 has assets composed solely of a 10-year, 11.5 percent coupon, $2.0 million loan with a 11.5 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, 11.5 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. Round your answers to 2 decimal places. (e.g., 32.16))