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will upvote thanks The First Frog Federal Bank has the following market value asset/liability structure: Assets $100,000,000 Asset duration (modified) 8.0 Liabilities 85,000,000 Liability duration

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The First Frog Federal Bank has the following market value asset/liability structure: Assets $100,000,000 Asset duration (modified) 8.0 Liabilities 85,000,000 Liability duration (modified) 0.5 Please answer both parts (a) and (b): a) What is your best estimate of how much equity the bank would have if rates rose by 100 basis points? b) First Frog's capital requirements require minimum capital of 10% of Liabilities (Equity/Liabilities must be at least 10%). How many basis points can interest rates increase before First Frog Bank's capital drops to 10% of liabilities? The First Frog Federal Bank has the following market value asset/liability structure: Assets $100,000,000 Asset duration (modified) 8.0 Liabilities 85,000,000 Liability duration (modified) 0.5 Please answer both parts (a) and (b): a) What is your best estimate of how much equity the bank would have if rates rose by 100 basis points? b) First Frog's capital requirements require minimum capital of 10% of Liabilities (Equity/Liabilities must be at least 10%). How many basis points can interest rates increase before First Frog Bank's capital drops to 10% of liabilities

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