Duration Gap and Hedging Problems (31 points total) Use the following information to answer questions 18 20. Assets Amount Rate Duration Cash $ 150 million Loans 1,500 million 12% 1.75 years Treasuries 350 million 9% 7.00 years Liab & Eq Deposits $ 700 million 7% 1.75 years CDs 1,150 million 8% 2.50 years Equity 150 million

18. Calculate the duration of assets. Show all your work. (3 points)

19. Calculate the duration of liabilities. Show all your work. (3 points)

20. Calculate the duration gap. Show all your work. (3 points)