Question 3: The following is City Bank T account Assets Liabilities and Capital Rate sensitive Assets Rate Sensitive Liabilities $100 $75 a. Assuming a decrease of 5% in interest rates (from 10% to 5%) for both assets and liabilities, calculate the change in the market value of the net worth as a percentage of total assets. Assume average duration of 4 years for the rate sensitive assets, and average duration of 2 years for the rate sensitive liabilities. b. What if interest rates increased by 3% (from 10% to 13%). c. What strategy should the Bank Manager follow to alleviate the risk of interest rates increase