Problem S (10%): American Bank current balance sheet appears below. All assets and liabilities are currently priced at par and pay interest annually Assets Amount (S Annual Rate Liabilities millions) Amount (S Annual Rate millions) 1-year bonds $60 7% 1-year CD $50 594 10-year loan $40 12% 2-year CD Equity $10 Total $100 Total $100 $40 a. What is the weighted average maturity of assets? b. What is the weighted average maturity of liabilities? c. What is this FI's maturity gap? d. What is market value of the two-year CD ifall market interest rates increase by 2 percent? e. What is the impact on the FT's equity of a percent overall increase in market interest rates on all fixed rate instruments Briefly discuss/roue results