3. Bank Duration GAP: State Bank's balance sheet is listed below. Market yields and durations (in years) are in parenthesis, and amounts are in millions. Calculate Assets Liabilities and Equity: Cash $20 Demand Deposits $250 Fed Funds [5.05%. 0.02) 150 MMDAs {4.5%. 0.50) T~bills (5.25%, 0.22) 300 {no minimum balance requirement) 360 T~bonds (7.50%, "3.55) 200 (305 (4.3%. 0.48} 715 Consumer loans [6%. 2.50) 900 CDs{6%, 4.45) 1.105 Gail loans (5.3%. 6.58) 475 Fed Fund (5%, 0.02) 515 Fixedrate mortgages (7.35. 19.50) 1200 Commercial paper (5.05%, 0.45) 400 Variablerate mortgages. Subordinated debt: repriced @ quarter [6.3%. 0.25} 500 Fixedrate (125%. 5.65) 200 Premises and equipment 120 Total Liabilities $3.545 Equity 400 Total assets $3.945 Total Liabilities and Euiy $3.945 a. What is State's Bank's duration gap? b. Use these duration values to calculate the expected changed in the value of the assets and liabilities of State Bank for the predicted increase of 1.5 percent in interest rates. c. What is the change in equity value forecasted from the duration values for the predicted increase in interest rates of 1.5 percent