$\backslash$table$[[(1),(2),(3),(4)],[,,\backslash$table$[[$Without$],[$interest rate$],[$swaps$]],\backslash$table$[[$With interest$],[$rate swaps$]]],[$Assets$,$Balance,$\backslash$table$[[$Duration$],[$years$]],\backslash$table$[[$Adjusted$],[$duration in$],[$years$]]],[$Variable rate pime loans,$16179,0\mathrm{.}29,1\mathrm{.}74],[$Other variable rate assets,$14963,0\mathrm{.}19,0\mathrm{.}19],[$Total variable rate assets,$31142,0\mathrm{.}241952347,0\mathrm{.}995261],[$Fixed rate loans,$27889,2\mathrm{.}19,2\mathrm{.}19],[\backslash$table$[[$Other fixed rate$],[$investments$]],12259,2\mathrm{.}95,2\mathrm{.}82],[$Total fixed rate assets,$40148,2\mathrm{.}422062369,2\mathrm{.}382367],[$Other assets,$8629,1\mathrm{.}34,1\mathrm{.}34],[$Total assets,$79919,1\mathrm{.}455707654,1\mathrm{.}729308],[,,,],[$Liabilities$,,,],[$Contractually repricable,$27479,2\mathrm{.}08,1\mathrm{.}73],[$Variable rate other liabilities,$10250,0\mathrm{.}05,0\mathrm{.}08],[$Total variable rate liabilities,$37729,1\mathrm{.}528501153,1\mathrm{.}281737],[$Total fixed rate liabilities,$20003,1\mathrm{.}49,0\mathrm{.}75],[$Noninterest bearing DDA,$13677,3\mathrm{.}42,3\mathrm{.}42],[$Total deposits$/$borrowings$,71409,1\mathrm{.}879995939,1\mathrm{.}54233],[$Other liabilities,$1476,0\mathrm{.}06,0\mathrm{.}06],[$Total liabilitie,$72885,1\mathrm{.}843139055,1\mathrm{.}512311]]$

In the table below, you will find the interest rate exposure of Banc One as of December $31,1993.$ Column $(1),$ the far left column, reports different categories of assets and total assets; different categories of liabilities and total liabilities. Column $(2)$ gives the dollar amounts in each asset and liability. Column $(3)$ reports the corresponding duration in years of the assets and liabilities without interest rate swaps. And column $(4)$ reports the duration with interest rate swaps.

a$.$ Compute the duration GAP using the information in the column without interest rate swaps. What would happen to the market value of equity from a $2\%$ increase in interest rates $($That is$,$ how much will the market value of equity change?$)?($For this assume that $\backslash$Delta R$/(1+$R$)=+0\mathrm{.}02)$

b$.$ Now, take the information in the $$with interest rate swaps column$$ and compute the duration GAP. What would happen to the market value of equity from a $2\%$ increase in interest rates $($That is$,$ how much will the market value of equity change?$)($For this assume that $\backslash$Delta R$/(1+$R$)=+0\mathrm{.}02)$

c$.$ Compare and contrast these two cases.