You are responsible for studying the financial operations of the company Regazza, with a capital of 20,000,000 euros, the balance sheet of which at June 30, 2009 is as follows:

Financial fixed assets break down as follows:

6,000 bonds at par with a nominal value of 1,000, fixed rate 11%, due June 30, 2016: 6,000,000 Variable rate bonds (TMO), due June 30, 2011: 3,500,000 Cash mainly contains BTANs at a fixed rate of 7%, due June 30, 2010 for an amount of 4,500,000 , and for the remainder, shares and cash. The details of the loans are as follows: Variable rate bond loan (TMO) repayable in fine on June 30, 2011: Bank loan at a fixed rate of 8% repayable in fine on June 30, 2011: Commercial paper at a fixed rate of 8.75% maturing on June 30, 2010: 4,000,000 2,000,000 5,500,000

a) You are asked to analyze the interest rate position on the balance sheet as of June 30, 2009. Explain the risk that Maxime runs in the event of changes in interest rates. b) Evaluate the value of securities and loans, and determine the net value of the interest rate position knowing that the money market rate is at 7% and that of the bond market at 6%. c) Calculate the net value of this interest rate position in the event of a 2% increase in interest rates in both the money market and the bond market.