Question 2 (25 marks) (a) There are five (5) maturity strategies that the bank can employ to manage their investments portfolio. Explain with a diagram the best maturity strategy for a bank and the reasons for your selection. Describe the advantages for the bank in employing this strategy? (13 marks) (b) Continued... A bond currently sells for RM920 based on a par value of RM1,000 and promises RM90 in coupon payment for three years before being retired. Yields to maturity on comparable-quality securities are currently at 12 percent. NAMN 2/4 BFN 2044 BANK MANAGEMENT 25 NOVEMBER 2021 i) Calculate the bond's duration. (8 marks) ii) Suppose interest rates in the market fall to 10 percent. Calculate the approximate percent change in the bond's price? (4 marks)