Assume you are the manager of a bank with the balance sheet as shown below. Determine the maturity GAP and duration GAP for the bank. What will happen to the value or net income for the bank if interest rates go up or down?

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Liabilities and Equity Capital Assets Demand deposits Interest-bearing deposits maturing in less than 1 year (D = 0.40 years) Interest-bearing deposits maturing in more than 1 year (D = 2.5 years) Cash assets $15M $10M Short-term investments (D = 0.35 years) $30M $10M Long-term investments (D = 5.00 years) $5M $45M Loans maturing in less than 1 year (D = 0.5 years) Borrowed funds (D = 0.25 years) Equity capital $25M $5M 10M Loans maturing in more than 1 year (D = 10.0 years) Total assets $5M Total liabilities and equity capital $80M $80M