Money Market deposit accts. = $7; Fixed rate CD’s = $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 CD’s = $16; Fed Funds borrowing = $4; Demand deposits = $3; Variable rate mortgage loans = $8

A. Develop a balance sheet from the above data into assets and liabilities with a correct division of rate sensitive and non-rate sensitive as illustrated in class notes.

B. 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.

C. Determine the new level of equity capital.