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Your employer has asked you to examine the interest-rate risk of your bank relative to your direct competition. The current market interest rate is 4.25%, but management is concerned that it will fall by the end of the year and wants to see what would happen to the relative profitability and value of the firm if the decline actually occurs. Interest-rate risk depends on each bank's relative position of interest-sensitive assets and liabilities. You begin the analysis by collecting the information and estimates (See Table 1) Table 1 Balance Sheet Data for Your Firm and Your Competition To prepare your presentation for the bank officers, you anticipate and answer the following questions: 1. What is the total of interest-rate-sensitive assets for (1 mark) a. Your firm? b. Your competition? 2. What is the total for interest-rate-sensitive liabilities for (1 mark) a. Your firm? b. Your competition? 3. What is the interest sentitive gap of a. Your firm? b. Your competion? 4. If interest rates decline to 4%, what will be the eflect on profis for (1 mark) a. Your firm? b. Your competition? 5. What is the average duration for (2. marks) a Assets for your firm? b. Assets for your competition? c. Liabilities for your firm? d. Liabilities for your competion? 6. What is the adfunted duration gpp for (1 mark) a. Your firm? b. Your competion? 7. Determine the interest rate riak exposure for (1 mark) a. Your firm? b. Your competion? 8. If intotest rales decline to 4%. what will be the expected change in the market value of equity for (2 makis) a. Your firm? b. Your competition