Waukesha Bank
Balance Sheet at December 31, 2021
			Amount	Duration
			($ millions)	(years)
Assets
Cash and Cash items			$6.00	0.00
Reserves at Fed			5.00	0.00
Securities:
Less than 1 year			41.00	0.40
1 - 2 years			3.00	1.60
Greater than 2 years			8.00	4.16
Residential mortgages:
Variable-rate			30.00	0.40
Fixed-rate (30 years)			15.00	10.30
Commercial loans:
Less than 1 year			50.00	0.90
1 - 2 years			33.00	1.80
Greater than 2 years			23.00	15.00
Building and Equipment			12.00	0.00
Other Assets			1.00	0.00
Total Assets			$227.00
			Amount	Duration
			($ millions)	(years)
Liabilities
Checkable deposits			$9.00	1.00
Money market demand accounts			8.00	0.80
Savings deposits			20.00	1.00
Certificates of deposit:
Variable-rate			50.00	0.90
Less than 1 year			21.00	0.30
1 - 2 years			13.00	1.80
Greater than 2 years			4.00	8.00
Fed funds borrowed			15.00	0.01
Borrowings:
Less than 1 year			40.00	0.40
1 - 2 years			9.00	1.20
Greater than 2 years			32.00	12.00
Other liabilities			1.00	0.00
Total Liabilities			$222.00
Equity Capital			$5.00
Total Liabilities and Equity			$227.00

To prepare your presentation for the bank officers, you anticipate and answer the following questions (Show your work and carry all numbers out 3 decimal places.)

1. What is the total for interest-rate-sensitive assets for the bank? (0.1 pts.)
2. What is the total for interest-rate-sensitive liabilities for the bank? (0.2 pts.)
3. What is the interest sensitive gap (ISGAP) of the bank? (0.2 pts.)
4. If interest rates increase by 1.5%, what will be the estimated change in net interest income for the bank? (0.2 pt.)

5. What is the weighted average duration of total assets for the bank? (0.2pts.)

6. What is the weighted average duration of total liabilities for the bank? (0.2 pts.)

7. What is the duration gap of capital (DGAP) for the bank? (0.2 pt.)

8. If interest rates increase by 1.5%, what will be the expected change in the market value of capital for the bank? (0.2 pt.)