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Finance 2. The balance sheet of Alliance Bank appears as follows: a. Calculate the duration of this balance sheet. [5 Marks] b. Assuming that the

Finance
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2. The balance sheet of Alliance Bank appears as follows: a. Calculate the duration of this balance sheet. [5 Marks] b. Assuming that the required rate of return is 8%, what would be the effect on the bank's economic value if interest rates increased by 1%. [3 Marks] c. Suppose that the expected change in EVE is unacceptable to management. What outcome could management take to reduce this change? [2 Marks] (10 Marks)

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