$(6$ points$)$ Moscow Insurance has reported the following balance sheet $($in thousands$)$:

All securities are selling at par equal to book value. The two$-$year notes are yielding $5$

percent, and the $15-$year munis are yielding $9$ percent. The one$-$year commercial paper pays

$4\mathrm{.}5$ percent, and the five$-$year notes pay $8$ percent. All instruments pay interest annually.

a$.$ What is the maturity gap? What is the interest rate exposure for Moscow Insurance?

rates increase $2$ percent. What is the dollar and percentage changes in assets, liabilities,

and equity?