Problem 7: A local bank has the following balance sheet Liability Loans $100 million Deposits $90 million Equity $10 million Asset 1. The duration of the loans is 4 years and the duration of the deposits is 2 years 1. What is the duration of the bank's equity? How would you interpret the duration of the equity? 2. Suppose that the yield curve moves from 6% to 6.5%. what is the change in the bank's equity value