5. The following information is provided for Green Tree Bank Cash Deposit N (2 years, 2%) Loan M (4%, 4 years) 250 Equity TOTAL Assets 325 TOTAL Liabilities 300 325 5a. Estimate the durations of Loan M and Deposit N. (8 Points) Period -Nm 5b. Using the duration formula estimate the change in the value of the equity if interest rates are expected to decrease by 1%. (8 Points) ***ONLY CHOOSE ONE QUESTION 5C or 5D TO ANSWER. (5 Points) 5c. Define Duration and explain why it is a better measure of Interest Rate Risk than the GAP Repricing Model or the Maturity Model 5d. Describe three properties or features of Duration. OR List and Describe three difficulties in applying the Duration Model