Problem 2 The balance sheet of Capital Bank appears as follows: Assets Liabilities and Maturities Short Term Securities and Adjustable Rate Loans $220 Short Term and Floating Rate Funds 5560 Duration: 6 months Duration 6 months Fixed-Rate Loans Duration: 3 years, 700 Fixed-Rate Funds Duration: 30 months. 270 Nonearning Assets 80 Equity 51000 Total Liabilities and Net Worth $1000 170 Total Assets Required: Calculate the duration gap of this bank Assuming that the required rate of return is a percent what would be the effect on the banks net worth if interest rates increased by percent, Suppose that the expected change in net worth is unacceptable to management. What outcome could management take to reduce this change