MCB Bank has the following market value balance sheet (in millions, all interest at annual rates). All securities are selling at par equal to book value. Assets and liabilities pay interest semi-annually. (25 marks)

Assets	Liabilities
Cash 150	Demand deposits 150
15 year commercial loan 200	5 year CDs at 200
At 10% interest balloon payment	6% interest balloon payment
30 year mortgages at 100	20 year debentures at 50
8% balloon payments	7% interest balloon payments
	Equity 50
Total 450	Total 450

a. What is the maturity gap for MCB Bank?

b. What will be the maturity gap if the interest rates on all assets and liabilities increase 2.5 percent?

c. What will happen to the market value of the equity?