4. Gap and Duration Analysis a. Take the following balance sheet, which of the assets and labilities are rate-sensitive? Which assets and liabilities are not? Assets Value Long-Term Loans 75 Long-Term Securities 26 Reserves 54 Short-Term Securities 15 Variable-rate Loans 30 Liabilities Value Checkable Deposits 40 Savings Deposits 100 Money Market 10 Accounts Variable Rate CDs 25 Long-Term CDs 25 b. What is the estimated rate of change of bank profit, in terms of next year's interest rate, conditional on this year's interest rate being 2%? c. Suppose that all the long-term securities that the bank holds mature in 4 years and their interest rate will be 5% in that year. What is the approximate market-value of these long-term securities in 4 years given this year's interest rate is 2%?