Given the following information: (all numbers are in millions)

Fixed rate CDs = $16 Variable rate mortgage loans $18

Treasury bills = $11.5 Fed Funds borrowing = $2

Savings Deposits = $4 Fixed rate loans = $18

Discount loans = $2.5 Reserves = $4.5

Treasury notes = $8 Equity Capital = $11

Variable rate CDs = $11 Fed Funds lending = $3.5

Demand deposits = $8 Money Market deposit accts. = $9

B. Perform a Standard Gap Analysis and a Duration Analysis using the above data if you have a .75% decrease in interest rates and an average duration of assets of 5.3 years and an average duration of liabilities of 4.7 years.

C. Determine the new level of equity capital.