Question 3 Question requires the use of the following bank information in the Table below Assets Market value Rate Duration (Years) Market Value Rate Duration (Years) Liabilities and Equity Time Deposits CDs Cash $ 200 $ 600 2.0% 1.500 Loans $ 800 8.0% 3.750 $ 500 4.5% 3.125 T-Bonds $ 250 4.0% 7.250 Equity $ 150 Total $ 1.250 $1,250 (a) What is the weighted average duration of assets? (b) What is the bank's duration gap? What is the bank's expected economic net interest income? (d) If interest rates rise 1% for all assets and liabilities, what is the approximate expected change in the economic value of equity? (2) What is your conclusion of duration gap. (2+2+2+2+2-10 marks)