Suppose the First National Bank of Duluth has $500.00 million in total assets with an average asset duration of five years. Assume that the banks liabilities are comprised of $86.75 million of demand deposits and $163.75 million in bonds with a 4.00% coupon rate (which pays annually) and a five year time-to-maturity. Further assume that current market interest rates are at 9.00% per annum.

Calculate the duration of the banks bonds and the bank's duration gap.