The duration of the assets of your bank is 5.3 years and the duration of your liabilities is 2.1 years. Your bank has $320,000 in assets, $300,000 in liabilities and $20,000 million in equity. Suppose the current fed funds rate is 2% and the Fed decides to increase interest rate by 50 basis points. What does the new balance sheet of your bank look like (i.e., what is the total assets, liabilities, and equity)?

A)

Assets= 311,686.27

Liabilities= 296,911.76

Equity= 14,774.51

B)

Assets= 315,200

Liabilities= 300,000

Equity= 15,200

c)

Assets= 315,200

Liabilities= 300,000

Equity= 15,200

d)

Assets= 315,622.22

Liabilities= 298,294.69

Equity= 17,327.53

e)none of the above