Given the above information, assume that the bank analyst is using a duration gap of 0.5 under a certain scenario: a. Estimate the change in market value of equity if there is a relative increase in all interest rates by 3.5% percent. b. Estimate the change in market value of equity if there is a relative decrease in all interest rates by 0.75%.

\begin{tabular}{lclc} \hline Assets (in S millions) & \multicolumn{2}{l}{ Liabilities / Equity (in \$ millions) } \\ \hline Cash & 10 & 2-year time deposits & 165 \\ Government securities & 150 & CDs & 12 \\ Floating-rate loans & 90 & Other borrowings & 80 \\ 5-year, fixed-rate mortgages & 40 & Equity capital & 33 \\ \hline Total & 290 & Total & 290 \\ \hline \end{tabular}