|Assets Da JInterest rate Liabilities D. Interest cost |$2 million in A1 11 years 5% $3 million in L1 10.5 years 10.75% |$4 million in A2 17 years 17% $5 million in L2 12 year 1.5% $3 million in A3 5 years 9% $2 million in L3 14 years 12% $5 million in A4 18 years 18% $7 million in L3 16 years 13% Total assets = $14 million Total liabilities = $12 million a) What is the DGAP of a bank with the following assets and liabilities? b) What will the change in the value of net worth be if interest rates increase by 1%? |Assets Da JInterest rate Liabilities D. Interest cost |$2 million in A1 11 years 5% $3 million in L1 10.5 years 10.75% |$4 million in A2 17 years 17% $5 million in L2 12 year 1.5% $3 million in A3 5 years 9% $2 million in L3 14 years 12% $5 million in A4 18 years 18% $7 million in L3 16 years 13% Total assets = $14 million Total liabilities = $12 million a) What is the DGAP of a bank with the following assets and liabilities? b) What will the change in the value of net worth be if interest rates increase by 1%