Suppose a bank has $500 million in interest rates sensitive assets, with a duration of 5

years, and $600 million of interest rate sensitive liabilities with a duration of 2 years. If

interest rates increase from 3% to 4%, what is the percentage change in net worth of the

bank? Enter your response as a percent without the percent sign (for example, enter a

numerical answer of 0.0525 = 5.25%, as 5.25).