Gunnison Insurance has reported the following balance sheet (in thousands):

Assets Liabilities and Equity

2-year Treasury note $195 1-year commercial paper $150

15-year munis $205 5-year note $185

Equity $65

Total Assets $400 Total Liabilities & Equity $400

All securities are selling at par equal to book value. The two-year notes are yielding 5 percent, and the 15-year munis are yielding 9 percent. The one-year commercial paper pays 4.5 percent, and the five-year notes pay 8 percent. All instruments pay interest annually.

Question 1: What is the dollar impact on the market value of equity?

Question 2: Assuming that all interest rates increase 2 percent. What is the dollar change in the total assets and liabilities?