Question: 2. (6 points ) Refer to the values calculated for Ist Bank of Yuma in the previous problem. a. (3 pts ) Suppose the average

2. (6 points ) Refer to the values calculated for Ist Bank of Yuma in the previous problem. a. (3 pts ) Suppose the average duration of assets for the Ist Bank of Yuma is 5 and average durationof liabilities is 1. Suppose interestrates increase by one percentage point. What is the new value for capital? b. (3 pts ) Suppose the gap between rate sensitive assets and rate sensitive liabilities is $30 million. If interest rates increase by one percentage point, what is the change in total profits

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