Bank ABC has the following 2 bond-like loans: Loan 1: $1m loan fixed for 3 years at 10% Loan 2: $1m loan fixed for 5 years at 12% I.a) The market interest rate is now at 5%. The duration of the bank's loan portfolio is years. (4 d.p., use spreadsheet to do calculation) 1.b) If the market interest rate increases by 1% now, the percentage change of the present value of the portfolio would be percent. (2 d.p.) ABC has $1.5m of liabilities (at market value) with a duration of 2.68 years. The value of the bank change due to the change in interest rate would be $ thousand. (2 d.p.)