Answer the following questionsChapter 8 from book a What is the duration and

Answer the following questionschapter 8 from book a

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sensitive liabilities. Answer the following questions;(Chapter 8 from book) a) What is the duration and convexity of your bond portfolio? What assumption do you apply for these measurements of interest rate risk? b) What is the duration GAP for your bank? c) What is the change of Economic Value of Equity (EVE) for the bank if the interest rate increases with 0.15%? d) What are the assumptions for analysis in using change of EVE to measure interest rate risk? 4. The following questions are based on the given financial statements of First Bank and Trust Company. You need to express your own ideas and analyses. Copying the information from the
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