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no excel please 10. Estimate the duration of Loan A and Deposit B Cash = $ 50 Loan A (10%, 5 years) = $500 Total

no excel please
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10. Estimate the duration of Loan A and Deposit B Cash = $ 50 Loan A (10%, 5 years) = $500 Total Assets = $550 Bank Balance Sheet Deposit B (5%, 2 years) = $ 520 Equity = $ 30 Total Liabilities $ 550 a. Estimate the duration of Loan A and Deposit B. b. Using the duration formula, estimate the change in the value of the equity if interest rates are expected to decrease by 3%. c. Estimate the convexity of Loan A. d. Using the duration plus convexity formula, estimate the change in the value of Loan A if interest rates are expected to decrease by 3%. There is no need to estimate the convexity of Deposit B. 10. Estimate the duration of Loan A and Deposit B Cash = $ 50 Loan A (10%, 5 years) = $500 Total Assets = $550 Bank Balance Sheet Deposit B (5%, 2 years) = $ 520 Equity = $ 30 Total Liabilities $ 550 a. Estimate the duration of Loan A and Deposit B. b. Using the duration formula, estimate the change in the value of the equity if interest rates are expected to decrease by 3%. c. Estimate the convexity of Loan A. d. Using the duration plus convexity formula, estimate the change in the value of Loan A if interest rates are expected to decrease by 3%. There is no need to estimate the convexity of Deposit B

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