suppose at the average duration of assets is five years in the average duration of liabilities is three years we further assume at the Marcus and just write roses from 3% to 4% by two percentage point how much will the market value of the banks assets change?

Paste Dictate Voice File Home Insert Draw Design Layout References Mailings Review View Help O Search X Cambria -- 10 A ab x, x' A EEEEE Styles Editing Sensitivity * AD A Aa A A - 21 Clipboard Font Paragraph Styles Sensitivity Suppose that the (average) duration of assets is 5 years and the average) duration of liabilities is 3 years. We further assume that the market interest rate rises from 3% to 4% by 2 percentage point (1) How much will the market value of the bank assets change increase or decrease)? (2) How much will the market value of the bank liabilities change (increase or decrease)? (3) Calculate the change in the value of net assets (assets - liabilities) of First National Bank Q.5 (2 points) Now suppose that the (average) duration of assets is 3 years and the (average) duration of liabilities is 5 years. We further assume that the market interest rate rises from 3% to 4% by 1 percentage point (1) How much will the market value of the bank assets change increase or decrease)? (2) How much will the market value of the bank liabilities change (increase or decrease)? (3) Calculate the change in the value of net assets (assets - liabilities) of First National Bank Dane of 70 Paste Dictate Voice File Home Insert Draw Design Layout References Mailings Review View Help O Search X Cambria -- 10 A ab x, x' A EEEEE Styles Editing Sensitivity * AD A Aa A A - 21 Clipboard Font Paragraph Styles Sensitivity Suppose that the (average) duration of assets is 5 years and the average) duration of liabilities is 3 years. We further assume that the market interest rate rises from 3% to 4% by 2 percentage point (1) How much will the market value of the bank assets change increase or decrease)? (2) How much will the market value of the bank liabilities change (increase or decrease)? (3) Calculate the change in the value of net assets (assets - liabilities) of First National Bank Q.5 (2 points) Now suppose that the (average) duration of assets is 3 years and the (average) duration of liabilities is 5 years. We further assume that the market interest rate rises from 3% to 4% by 1 percentage point (1) How much will the market value of the bank assets change increase or decrease)? (2) How much will the market value of the bank liabilities change (increase or decrease)? (3) Calculate the change in the value of net assets (assets - liabilities) of First National Bank Dane of 70