County Bank has the following market value balance sheet (in millions, all interest at annual rates). All securities are selling at par equal to book value. Assets Liabilities and Equity Cash 15-year commercial loan $ 20 Demand deposits $100 5-year CDs at at 10% interest, 6% interest, balloon payment 160 balloon payment 210 30-year mortgages at 8% interest, balloon payment 300 Total assets $480 120 $480 20-year debentures at 7% interest Equity Total liabilities and equity

a. What is the maturity gap for County Bank?

b. What will be the maturity gap if the interest rates on all assets and liabili- ties increase 1 percent?

c. What will happen to the market value of the equity?