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f . Suppose First National Bank holds $100 million in assets with an average duration of 5 years, and it holes $90 million in i

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f . Suppose First National Bank holds $100 million in assets with an average duration of 5 years, and it holes $90 million in i liabilities with an average duration of 2 years. Further suppose there is a 4-percentage-point increase In Interest rates. Calculate the percentage decrease in First Nationai Bank's net worth relative to the total original asset value. A4-percentage-point increase in interest rates decreases First National Bank's net worth by D% of the total original asset value. (Round your response to two decimal places.) -7

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