The following is an FI's balance sheet ($millions).

Assets	Amount	Duration	Liabilities	Amount	Duration
Cash	$1	0 years	Dem. Deposits	$100	0 years
FF&RP	20	0.01 years	FF&RP	50	0.01 years
Munis	50	x	CDs	90	1.0 years
Loans	200	y	Net Worth	31

Notes to Balance Sheet. Munis are 2-year 6 percent annual coupon municipal notes selling at par. Loans are floating rates, repriced quarterly. Spot discount yields for 91-day Treasury bills are 3.75 percent. CDs are 1-year pure discount certificates of deposit paying 4.75 percent.

a. What is the duration of the municipal notes (the value of x)?

b. What is this bank's interest rate risk exposure, if any?

c. What will be the impact, if any, on the market value of the bank's equity if all interest rates increase by 75 basis points? (i.e., DR/(1 + R) = 0.0075) .