Question 13 (5 marks) Sunshine Bank has the following assets and liabilities: Assets Liabilities Rate-sensitive $60 million $40 million Fixed-rate $40 million $50 million Assume 100% of fixed-rate assets and liabilities are not rate-sensitive. a) Calculate the bank's income gap. (1 mark) b) Calculate the change in bank's income if interest rates decrease by 3%. (2 marks) c) Assume the average duration of the bank's assets is three years, while the average duration of its liabilities is four years. Calculate the change in bank's net worth if interest rates decrease from 5 percent to 2 percent. (2 marks)