Cozy Bank$$s balance sheet is as follows:

Assets: Ave. Duration

Short$-$term Securities $4\%$ rate $500$ million $1$ year

Long$-$term Loans $7\%$ rate $ $2,500$ million $10$ years

Total Assets $$3,000$ million

Liabilities & Equity

Short$-$term Deposits $2\%$ rate $$2,000$ million $1$ year

Certificates of Deposit $4\%$ rate $700$ million $3$ years

Total Liabilities $$2,700$ million

Equity $300$ million

Total Liab.& Equity $$3,000$ million