PART II: REQUIRED 20-point problem. Given the following information: (all numbers are in millions) $26 $18 Money Market deposit acets. = Treasury notes = Savings Deposits = Non-mortgage fixed rate loans Reserves = Equity Capital = Variable rate CD's = Fixed rate CD's = Fed Funds lending = Fixed rate mortgage loans = Discount loans = $20 $18 $4 $17 $16 $7 $14 $2 $25 $3 $4 $22 $1 $11 Other adjustable rate loans Treasury-bills = Fed Funds borrowing = Variable rate mortgage loans = Transactions deposits = A. Develop a balance sheet from the above data into assets and liabilities with a correct division of rate sensitive and non-rate sensitive as illustrated in class notes and lecture. B. Perform a Standard Gap Analysis and a Duration Analysis using the above data if you have a 1.05% increase in interest rates and an average duration of assets of 7.1 years and an average duration of liabilities of 2.9 years. C. Indicate the new level of equity capital. Note: Answers for b&c must be in $/cent form. Do not leave them as a decimal form in millions. PART II: REQUIRED 20-point problem. Given the following information: (all numbers are in millions) $26 $18 Money Market deposit acets. = Treasury notes = Savings Deposits = Non-mortgage fixed rate loans Reserves = Equity Capital = Variable rate CD's = Fixed rate CD's = Fed Funds lending = Fixed rate mortgage loans = Discount loans = $20 $18 $4 $17 $16 $7 $14 $2 $25 $3 $4 $22 $1 $11 Other adjustable rate loans Treasury-bills = Fed Funds borrowing = Variable rate mortgage loans = Transactions deposits = A. Develop a balance sheet from the above data into assets and liabilities with a correct division of rate sensitive and non-rate sensitive as illustrated in class notes and lecture. B. Perform a Standard Gap Analysis and a Duration Analysis using the above data if you have a 1.05% increase in interest rates and an average duration of assets of 7.1 years and an average duration of liabilities of 2.9 years. C. Indicate the new level of equity capital. Note: Answers for b&c must be in $/cent form. Do not leave them as a decimal form in millions