1. You are asked to determine the market value (mark-to-market) balance sheet for Blackburn State Bank and loan duration (amounts in S thousands and duration in years): Book Value Market Value Assets Amount Amount Duration T-bills $ 360 S 360 0.50 Loans 10,000 Total Assets 10,360 Liabilities Deposits Total Liabilities 0.50 8.368 8,368 8,368 8,368 Equity Total Lia and NW 1,992 10,360 Since this is a simple bank, it has only one type of loan. The loan has a $10,000 book value (current outstanding principal), "amortized" loan with annual payments, an interest rate of 6.5 percent, and 20-years to maturity. Similar amortized loans today (market interest rate for similar loans) have an interest rate of 7 percent which, is the market yield