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Suppose Bank Z's total asset value is $150 million and its total liability value is $120 million. The bank manager wants to know what happens
Suppose Bank Z's total asset value is $150 million and its total liability value is $120 million. The bank manager wants to know what happens when interest rates rise from 10% to 11%. If the average duration of the assets is 2.75 years and the average duration of liabilities is 1.25 years, the change in the market value of the assets is equal to ?%, and the change in the market value of liabilities will be equal to ?%. (Round your answers to two decimal places.)
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