H . No A B D E F G 1 Bank 7 2 Assets Market Value Rate Duration 3 4. Cash 40,000 0% 5 Bonds 160,000 6.50% 1.8 6 Commercial Loans 400,000 12% 1.5 7 8 Total Assets 600,000 9 10 Liabilities and Equity 11 12 Small Time Deposits 100,000 3.10% 4 13 Large CD's 120,000 5.20% 1 14 Transactions Accounts 320,000 2.40% 3.3 15 Equity 60,000 16 17 Total Liability and Equity 600,000 18 19 20 Calculate the Banks Duration Gap 21 Calculate the Change in the Banks Economic Value of Equity with a 1% increase interest rates 22 Calculate the Change in the Banks Economic Value of Equity with a 2% decrease in interest rates