The balance sheet of Capital Bank appears as follows: Assets Liabilities and Maturities Short Term Securities and Adjustable Rate Loans 5220 Short Term and Floating Rate Runds 5560 Duration: 6 months Duration 6 months Fixed-Rate Loans Duration: 8 years, 700 Fixed-Rate Funds Duration: 30 months. 270 Nonearning Assets Equity 170 Total Assets 51000 Total Liabilities and Net Worth 51000 Required: Calculate the duration gap of this bank. 80 Assuming that the required rate of return is 8 percent what would be the effect on the bank's net worth if interest rates increased by 1 percent Suppose that the expected change in net worth is unacceptable to management. What outcome could management take to reduce this change