(a)Consider the following balance sheet for MAC Bank when answering parts (i) through (iv).

through (IV). Assets ($ million) $ Liabilities & Equity ($ $ million) 4-month interbank Cash 30 borrowing Yield: 7.00% 130 Duration: 0.3 6-month T-notes 2-year CD (5%) Yield: 7.05% 60 Yield: 5% 100 Duration: 0.5 Duration: 1.05 9-month T-notes 7-year fixed rate Yield: 7.25% 80 Subordinated debt 75 Duration: 0.75 Yield: 8.55% Duration: 6.2 Two-year Treasury bonds Yield: 7.50% 60 Equity 25 Duration: 1.74 10-year Treasury bonds Yield: 8.96% 100 Duration: 9.28 Total assets 330 Total liabilities and Equity 330