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Gladiator Bank has the following assets and liabilities: Assets Liabilities + Equity Reserves (cash) 15,000 5 year CD Coupon=5% Face=40,000 4 year loan Coupon=10% Face=25000

Gladiator Bank has the following assets and liabilities:

Assets

Liabilities + Equity

Reserves (cash)

15,000

5 year CD

Coupon=5%

Face=40,000

4 year loan Coupon=10%

Face=25000

Demand deposits

Maturity=1 year

Coupon=7%

Face=20,000

20 year loan

Coupon=8%

Face=100,000

10 year CD

Coupon=3%

Face=125,000

10 year T-bond

Coupon=4%

Face=75,000

Equity

a. Determine the market value of all assets, liabilities, and equity given R=7%. (Round data to two decimal points).

b. Calculated the duration of each asset and liability. (Ignore convexity). (Round data to 4 decimal points).

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