The following questions are seperate, but all relate to the below balance sheet. Please show explanation. Thank you for your help.

Question 1. Assume that the average duration of assets is 9 years, while the average duration of liabilities is 3 years. What is the change to the banks equity, in millions, if interest rates were increasing from 9% to 10%? Pick from the following

3.30

5.78

-5.78

-3.30

Question 2. Assume that the average duration of assets is 7 while the average duration of liabilities is 5 years. You are the liability manager of the bank and your boss is unhappy about the interest rate risk. How should you change the duration of the liability side to eliminate all interest rate risk? Provide your answer by calculating the new liabilities duration with two decimals.

Question 3. Assume that the average duration of assets is 9 while the average duration of liabilities is 5 years. You are the liability manager of the bank and your boss is unhappy about the interest rate risk. How should you change the duration of the assets side to eliminate all interest rate risk? Provide your answer by calculating the new assets duration with two decimals.

You are assessina the interest rate risk of followina balance sheet