Brac Bank has the following market value balance sheet (in millions BDT, annual rates):

Assets Liabilities and Equity

Cash Tk.60 Demand deposits Tk.300

15-year commercial loan @ 12% 5-year CDs @ 7% interest,

interest, balloon payment Tk.320 balloon payment Tk. 210

30-year Mortgages @ 9% interest, 20-year debentures @ 8% interest Tk.120

monthly amortizing Tk. 320 Equity Tk. 70

Total Assets Tk. 700 Total Liabilities & Equity Tk. 700

a. What is the maturity gap for Brac Bank?

b. What will be the maturity gap if the interest rates on all assets and liabilities increase by 2 percent?

c. What will happen to the market value of the equity?