PART II: REQUIRED 20-point problem. Given the following information: (all numbers are in millions) Money Market deposit accts. = $26 Fixed rate CD'S = $14 Treasury notes = $18 Fed Fimds lending = $2 Savings Deposits = $20 Fixed rate mortgage loans = $25 Non-mortgage fixed rate loam $18 Discount loans = $3 Reserves = $4 Other adjustable rate loans $4 Equity Capital = $17 Treasury-bills = $22 Variable rate CD's = $16 Fed Funds borrowing = $1 Transactions deposits = $7 Variable rate mortgage loans = $11 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 and lecture. B. Perform a Standard Gap Analysis and a Duration Analysis using the above data if you have a 1.05% increase in interest rates and an avenge duration of assets of 7.1 years and an average duration of liabilities of 2.9 years. C. Indicate the new level of equity capital. Note: Answers for b & 1: must be in $lcent form. Do not leave them as a decimal form in millions. .._ __-._'.. ._ _.. _