Conduct DGAP analysis using the following information:

a$.$ Calculate the bank$$s DGAP if the ALCO targets the economic value of stockholders equity. Is this bank positioned to gain or lose if interest rates rise?

b$.$ Estimate the change in economic value of equity if all market interest rates fall by an average of $1\mathrm{.}5$ percent. Compare the results of applying Equation $8\mathrm{.}2$ to each balance sheet item$$adding up the total change in assets less the total change in liabilities to get the change in equity$$versus using Equation $8\mathrm{.}9$ to find the estimated change in EVE.

c$.$ Provide a specific transaction that the bank could implement to immunize its interest rate risk. The transaction may be a new asset funded by a new liability or an asset sale and the simultaneous purchase of another asset.