For simplicity, assume that a bank currently has the balance sheet in the table below

You are considering to issue $50 million long-term bonds to meet its funding requirements among the following two bonds available for possible change in future interest rate.

Bond I: 3-year zero-coupon bonds yielding 6%

Bond II: 5-year 6% annual coupon bonds yielding 6%

Calculate duration gap when each bond is selected respectively.

	Value (in millions)	Duration (in years)		Value (in millions)	Duration (in years)
T-Bill	50.00	0.5	Long-term bonds	50.00
T-Bond	50.00	2.5	Bank Capital	50.00

Please include cell calculations. thank you