Money Market deposit accts. = $7;

Fixed rate CDs = $6;

Treasury notes = $8;

Fed Funds lending = $2;

Savings Deposits = $2;

Fixed rate loans = $17;

Discount loans = $1.5;

Reserves = $2.5;

Equity Capital = $7;

Treasury-bills = $9;

Variable rate CDs = $16;

Fed Funds borrowing = $4;

Demand deposits = $3;

Variable rate mortgage loans = $8

A. Perform a Standard Gap Analysis and a Duration Analysis using the above data if you have a 2.20% decrease in interest rates and an average duration of assets of 8.2 years and an average duration of liabilities of 3.3 years.

B. Determine the new level of equity capital.