What is the duration gap for firm and competitor

Using net worth formula if interest rate decline by 3%, what will be expected change in the market value of net worth for firm and competitors. Assume initial interest rate is 12 %

Your employer has asked you to examine the interest-rate risk of your bank relative to your direct competition. Management is concerned that interest rates will fall by the end of the year and the decline actually occurs. see what would happen to the relative profitability of the firm wants Interest-rate risk depends on each bank's relative position of interest-sensitive assets and liabilities. You begin the analysis by collecting the information and estimates Bank Balance Sheet Competition Your Firm Duration (vears) Duration (vears) (Smillions) (Smillions) Assets Reserves and cash items 0.0 4 0.0 Se than 1 year 0.3 12 0.6 1,6 4 3 1-2 years Greater than 2 years Residential mortgages 4.0 5.0 7 04 A A 55 16 Fixed-rate (30 years) Commerical loans Less than 1 year 0.6 0.9 13 60 Greater than 2 vears 0.C 25 0.0 10 Physical capital Liabilities 1.0 14 1.0 10 deposits 05 0.6 Money market deposit accounts Savings deposits CDs 1.0 16 1,0 12 12 03 10 ear 1.8 22 10 1.1 8 1-2 years Greater than 2 years 10 2.9 15 00 14 0.0 10 Fed funds Borrowings 0 7 0.4 12 12 1 year 1-2 vears 3.8 31 2.9 39 Greater than 2 years