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The following a simple type of financial statement for the First National Bank is for the current year: Assets Duration Reserves Duration Liabilities 5,000,000 0.0
The following a simple type of financial statement for the First National Bank is for the current year: Assets Duration Reserves Duration Liabilities 5,000,000 0.0 Deposits 20,000,000 3.0 CDs 35,000,000 35,000,000 1.5 1.5 Securities Residential Interbank 20,000,000 3.5 5,000,000 0.0 Mortgages Loans Commercial Loans 50,000,000 2.0 Borrowings 20,000,000 2.0 Buildings, etc. 0.0 Bank Capital 5,000,000 5,000,000 $100,000,000 Total Total $100,000,000 Given the estimates of duration from the financial statement, what will happen to the bank's net worth if interest rates rise by 10 percentage points
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