Duration 0 1.8 years 1.5 years 2. Use the following information to conduct a duration gap analysis. Assets Amount Rate Cash $ 23,000 0% Bonds $102,000 7.2% Loans $375,000 11.0% Liabilities and Equity Small time deposits $130,000 3.6% Large CDs $ 70,000 6.3% Interest checking $250,000 2.8% Equity $50,000 4 years 1 year 3.3 years b. Estimate the change in market value of equity if all market interest rates fall by an average of 1.5%. Note that the rates are provided so that you can calculate R in the equation. As is commonly done, use the weighted average of asset yields as R (the average yield). Do you understand what I mean? If not, ask. Duration 0 1.8 years 1.5 years 2. Use the following information to conduct a duration gap analysis. Assets Amount Rate Cash $ 23,000 0% Bonds $102,000 7.2% Loans $375,000 11.0% Liabilities and Equity Small time deposits $130,000 3.6% Large CDs $ 70,000 6.3% Interest checking $250,000 2.8% Equity $50,000 4 years 1 year 3.3 years b. Estimate the change in market value of equity if all market interest rates fall by an average of 1.5%. Note that the rates are provided so that you can calculate R in the equation. As is commonly done, use the weighted average of asset yields as R (the average yield). Do you understand what I mean? If not, ask