(iii) Using the duration-based Implied Price Volatility (IPV) formula, compute the price changes for each banks assets and liabilities, in response to a 1 percent change in interest rates, from the original scenario. Bank 1 New MVA: _______ New MVL: ________ New Net Worth ___________ Bank 2 New MVA: _______ New MVL: ________ New Net Worth ___________ (iv) Repeat step (i) using a 10 percent increase in interest rates, from the original scenario. Bank 1 Old MVA: _______ Old MVL: ________ Old Net Worth: ___________ New MVA: _______ New MVL: ________ New Net Worth ___________ Bank 2 Old MVA: _______ Old MVL: ________ Old Net Worth: ___________ New MVA: _______ New MVL: ________ New Net Worth ___________ (v) Repeat step (iii) for a 10 percent rise in interest rates, from the original scenario. Bank 1 New MVA: _______ New MVL: ________ New Net Worth ___________ Bank 2 New MVA: _______ New MVL: ________ New Net Worth ___________ (vi) What do you conclude about (a) how well IPV works as an approximation for actual price volatility State with two bullet points and illustrate your statement with two graphs in one correctly labeled and titled figure. (b) the two banks accounts and their interest rate risk exposure? Why is the impact on their net worth different? State with two bullet points.