3. Consider the following bank balance sheet (fixed rates and pure discount securities unless indicated otherwise). Interest rates on liabilities are 4 percent and on assets are 6 percent. Duration $billions (years) Assets Prime-Rate Loans (rates set monthly) 325 1.0 2-Year Car Loans 275 2.0 30-Year Mortgages 400 7.0 Total Assets (A) 1,000 ? Liabilities and Equity Super Now Checking Accounts (rates set monthly) 350 1.0 6-Month Certificates of Deposit 250 .5 3-Year Certificates of Deposit 300 3.0 Total Liabilities (L) 900 ? Equity (E) 100 Total Liabilities (L) and Equity (E) 1,000 a. What is the duration of assets, DA, and liabilities, DL ? 3. Consider the following bank balance sheet (fixed rates and pure discount securities unless indicated otherwise). Interest rates on liabilities are 4 percent and on assets are 6 percent. Duration $billions (years) Assets Prime-Rate Loans (rates set monthly) 325 1.0 2-Year Car Loans 275 2.0 30-Year Mortgages 400 7.0 Total Assets (A) 1,000 ? Liabilities and Equity Super Now Checking Accounts (rates set monthly) 350 1.0 6-Month Certificates of Deposit 250 .5 3-Year Certificates of Deposit 300 3.0 Total Liabilities (L) 900 ? Equity (E) 100 Total Liabilities (L) and Equity (E) 1,000 a. What is the duration of assets, DA, and liabilities, DL