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4. County Bank has the following market value balance sheet (in millions, all interest at annual rates). Assets Liabilities and Equity Cash $85 Demand deposits

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4. County Bank has the following market value balance sheet (in millions, all interest at annual rates). Assets Liabilities and Equity Cash $85 Demand deposits $185 10-year commercial loan at 10% 5-year CDs at 6% interest, interest, balloon payment 175 balloon payment 235 15-year mortgages at 8% interest, 30-year debentures at 7% interest, 110 balloon payment 440 balloon payment Equity 170 Total assets $700 Total liabilities & equity $700 a) What is the maturity gap for County Bank? b) What will be the maturity gap if the interest rates on all assets and liabilities increase by 1%? c) How much will the market value of equity change (in USD)? 4. County Bank has the following market value balance sheet (in millions, all interest at annual rates). Assets Liabilities and Equity Cash $85 Demand deposits $185 10-year commercial loan at 10% 5-year CDs at 6% interest, interest, balloon payment 175 balloon payment 235 15-year mortgages at 8% interest, 30-year debentures at 7% interest, 110 balloon payment 440 balloon payment Equity 170 Total assets $700 Total liabilities & equity $700 a) What is the maturity gap for County Bank? b) What will be the maturity gap if the interest rates on all assets and liabilities increase by 1%? c) How much will the market value of equity change (in USD)

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