PLSSS I HAVE 30 MIN IMPORTANTTT !!!!!

Interest Rate Sensitive Assets Interest Rate Sensitive Liabilities Asset Amount Duration Liability Amount Duration Securities 300 2 Commercial papers 500 1,2 Consumer loans 400 1 Bank loans 800 1,9 Commercial loans 250 2,5 Short term debts 700 2,2 Mortgages 500 4 a) If the interest rate rises by 2%, what is the change of profit? (4 pts) b) Calculate the duration of assets and liabilities. (3 pts) c) Calculate the duration gap. (3 pts) d) What is the impact on the value of the bank's equity of an interest rate increase from 2.0% to 2.5%? (5 pts) e) If we want to immunize net worth from interest-rate risk and we don't have a chance to change the durations of any assets and liabilities but the mortgages, what should be the duration of mortgages to completely immunize the interest rate risk. (7 pts) DURgap = DUR XDUR