An insurance company issues a $250 000 one-year bond paying 7 per cent annually in order to finance the acquisition of a $250 000 one-year corporate loan paying 9 per cent semi-annually. (The loan contract requires the corporate borrower to pay half of the principal at the end of six months and the rest at the end of the year.)What is the insurance companys maturity gap? Based on the maturity model, what is the interest rate risk exposure given the insurance companys maturity gap? Immediately after the insurance company makes these investments, all interest rates decline by 5 per cent. What is the impact on the asset (corporate loan) cash flows? What is the impact on the liability (one-year note) cash flows? What is the impact on the insurance companys net interest income? Are the above maturity models conclusions about interest rate risk exposure correct? Why or why not?