State Bank's balance sheet is listed below. Market yields and durations in years) are in parenthesis, and amounts are in millions. Assets Cash $31 Fed funds (2.05%, 0.02) 150 3-month T-bills (3.25%, 0.22) 200 8-year T-bonds (6.50%, 7.55) 250 5-year munis (7.20%, 4.25) 50 6-month consumer loans (5%, 0.42) 250 5-year car loans (6%, 3.78) 350 7-month C&I loans (4.8%, 0.55) 200 2-year C&I loans (4.15%, 1.65) 275 Fixed-rate mortgages (5.10%, 0.48) (maturing in 5 months) 450 Fixed-rate mortgages (6.85%, 0.85) (maturing in 1 year) Fixed-rate mortgages (5.30%, 4.45) (maturing in 5 years) Fixed-rate mortgages (5.40%, 18.25) (maturing in 20 years) 355 Premises and equipment 20 Total assets $3,156 Liabilities and Equity Demand deposits $253 Savings accounts (0.5%, 1.25) 50 MMDAs (3.5%, 0.50) (no minimum balance requirement) 460 3-month CDs (3.2%, 0.20) 175 1-year CDs (3.5%, 0.95) 375 5-year CDs (5%, 4.85) 350 Fed funds (2%, 0.02) 225 Repos (2%, 0.05) 290 6-month commercial paper (4.05%, 0.55) 300 Subordinate notes: 1-year fixed rate (5.55%, 0.92) 200 Subordinated debt: 7-year fixed rate (6.25%, 6.65) 100 Total liabilities $2,778 Equity Total liabilities and equity 378 $3,156 Assume savings accounts and MMDAs are rate-sensitive liabilities. a. What is the repricing gap if the planning period is six months? One year? b. What is State Bank's duration gap? c. What is the impact over the next six months on net interest income if interest rates on RSAs increase 50 basis points and on RSLs increase 35 basis points? Explain the results. d. What is the impact over the next year on net interest income if interest rates on RSAs decrease (increase) 35 basis points and on RSLs decrease increase) 50 basis points? Explain the results. e. Use these duration values to calculate the expected change in the value of the assets and liabilities of State Bank for a predicted decrease of 0.35 percent in interest rates on assets and 0.50 percent on liabilities. f. What is the change in equity value forecasted from the duration values for decrease of 0.35 percent in interest rates on assets and 0.50 percent on liabilities? g. Use the duration gap model to calculate the change in equity value if the relative change in all market interest rates is a decrease of 50 basis points. State Bank's balance sheet is listed below. Market yields and durations in years) are in parenthesis, and amounts are in millions. Assets Cash $31 Fed funds (2.05%, 0.02) 150 3-month T-bills (3.25%, 0.22) 200 8-year T-bonds (6.50%, 7.55) 250 5-year munis (7.20%, 4.25) 50 6-month consumer loans (5%, 0.42) 250 5-year car loans (6%, 3.78) 350 7-month C&I loans (4.8%, 0.55) 200 2-year C&I loans (4.15%, 1.65) 275 Fixed-rate mortgages (5.10%, 0.48) (maturing in 5 months) 450 Fixed-rate mortgages (6.85%, 0.85) (maturing in 1 year) Fixed-rate mortgages (5.30%, 4.45) (maturing in 5 years) Fixed-rate mortgages (5.40%, 18.25) (maturing in 20 years) 355 Premises and equipment 20 Total assets $3,156 Liabilities and Equity Demand deposits $253 Savings accounts (0.5%, 1.25) 50 MMDAs (3.5%, 0.50) (no minimum balance requirement) 460 3-month CDs (3.2%, 0.20) 175 1-year CDs (3.5%, 0.95) 375 5-year CDs (5%, 4.85) 350 Fed funds (2%, 0.02) 225 Repos (2%, 0.05) 290 6-month commercial paper (4.05%, 0.55) 300 Subordinate notes: 1-year fixed rate (5.55%, 0.92) 200 Subordinated debt: 7-year fixed rate (6.25%, 6.65) 100 Total liabilities $2,778 Equity Total liabilities and equity 378 $3,156 Assume savings accounts and MMDAs are rate-sensitive liabilities. a. What is the repricing gap if the planning period is six months? One year? b. What is State Bank's duration gap? c. What is the impact over the next six months on net interest income if interest rates on RSAs increase 50 basis points and on RSLs increase 35 basis points? Explain the results. d. What is the impact over the next year on net interest income if interest rates on RSAs decrease (increase) 35 basis points and on RSLs decrease increase) 50 basis points? Explain the results. e. Use these duration values to calculate the expected change in the value of the assets and liabilities of State Bank for a predicted decrease of 0.35 percent in interest rates on assets and 0.50 percent on liabilities. f. What is the change in equity value forecasted from the duration values for decrease of 0.35 percent in interest rates on assets and 0.50 percent on liabilities? g. Use the duration gap model to calculate the change in equity value if the relative change in all market interest rates is a decrease of 50 basis points