Hello, can you please help me the with the part ( calculate the value of bond ) with an explanation.

Revision Questions Q1 Risk and gap analysis A financial institution borrows short term funds at 5% in order to finance a 7 year bond at 7% and has the following balance sheet $ Millions Liabilities & Equity $ Millions Assets 500 Term deposits Cash (non-interest earning) 7,500 7,500 Equity Bond 500 8,000 Total Liabilities and equity Total Assets 8,000 identify and describe 4 risks for the scenario given. (8 marks) Calculate NIl now and following a rate rise of 1% (5 marks) Determine the repricing or funding gap (2 marks) Calculate the value of a bond following a shock increase in interest rates of 1 percent (5 marks) Produce a balance sheet after the rate rise (5 marks) Michael Baker (Flinders University) 9/19