Your bank has the following balance sheet:

Assets		Liabilities
Reserves	$ 100 million	Deposits	$950 million
Securities	$ 400 million
Loans	$ 500 million	Capital	$50 million

Suppose the average duration of the banks assets is eight years, whereas the average duration of its liabilities is five years. Conduct a duration analysis for the bank, and show what will happen to the net worth of the bank if interest rates rise by 2%. What actions could you take to reduce the banks interest rate risk?