PART III: 15-point problem. Given the following information: (all numbers are in millions) $18 $16 $11.5 $2 $4 Fixed rate CD's = Treasury bills = Savings Deposits = Discount loans = Treasury notes = Variable rate CD's = Demand deposits = $2.5 Variable rate mortgage loans Fed Funds borrowing = Fixed rate loans = Reserves = Equity Capital = Fed Funds lending = Money Market deposit accts. = $18 $4.5 $11 $3.5 $8 $11 $8 $9 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. B. Perform a Standard Gap Analysis and a Duration Analysis using the above data if you have a 2.25% decrease in interest rates and an average duration of assets of 8.4 years and an average duration of liabilities of 4.5 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 III: 15-point problem. Given the following information: (all numbers are in millions) $18 $16 $11.5 $2 $4 Fixed rate CD's = Treasury bills = Savings Deposits = Discount loans = Treasury notes = Variable rate CD's = Demand deposits = $2.5 Variable rate mortgage loans Fed Funds borrowing = Fixed rate loans = Reserves = Equity Capital = Fed Funds lending = Money Market deposit accts. = $18 $4.5 $11 $3.5 $8 $11 $8 $9 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. B. Perform a Standard Gap Analysis and a Duration Analysis using the above data if you have a 2.25% decrease in interest rates and an average duration of assets of 8.4 years and an average duration of liabilities of 4.5 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