Question 7 0.5 pts Bank of the West has a following financial statement for the current year. The manager predicts that 15% of fixed-rate mortgages prepay this year. The manager also estimates that 10% of checkable deposits and 20% of savings accounts are rate sensitive. Assets Liabilities $ Amount Duration Duration Reserves $1,500,000.00 0 2 Checkable Deposits MMDAS $ Amount $15,000,000.00 $4.300,000.00 $6,000,000.00 0.1 Securities Savings Accounts 1 2 Years 8.6 $3,400,000.00 0.7 Variable-rate Fixed-rate 2 Years 2.4 $8,000,000.00 Interbank Loans Commercial Loans 0 $5,000,000.00 0.8 2 Years 4.5 > 2 Years $1,250,000.00 $7,000,000.00 $2,400,000.00 0 Bank Capital Building, etc. $60,200,000.00 Total $60,200,000.00 Total Question: What is the duration gap for Bank of the West? Choose the closest answer. O 3.12 years O 2.87 years O 3.45 years O 3.55 years