Use the data provided for Gotbucks Bank, Inc., to answer thisquestion.

Gotbucks Bank, Inc. (in $ millions)
Assets			Liabilities and Equity
Cash	$	50	Core deposits	$	50
Federal funds		40	Federal funds		70
Loans (floating)		125	Euro CDs		150
Loans (fixed)		85	Equity		30
Total assets	$	300	Total liabilities and equity	$	300

Notes to the balance sheet: Currently, the fed funds rate is10.5 percent. Variable-rate loans are priced at 3 percent overLIBOR (currently at 13 percent). Fixed-rate loans are selling atpar and have five-year maturities with 14 percent interest paidannually. Assume that fixed rate loans are non-amortizing. Coredeposits are all fixed rate for two years at 10 percent paidannually. Euro CDs currently yield 11 percent.

a.	What is the duration of Gotbucks Bank’s (GBI) fixed-rate loanportfolio if the loans are priced at par? (Do not roundintermediate calculations. Round your answer to 3 decimal places.(e.g., 32.161))

Duration

years

b.	If the average duration of GBI’s floating-rate loans (includingfed fund assets) is .56 year, what is the duration of the bank’sassets? (Note that the duration of cash is zero.) (Do notround intermediate calculations. Round your answer to 3 decimalplaces. (e.g., 32.161))

Duration (assets)

years

c.	What is the duration of GBI’s core deposits if they are pricedat par? (Do not round intermediate calculations. Round youranswer to 3 decimal places. (e.g., 32.161))

Duration (deposits)

years

d.	If the duration of GBI’s Euro CDs and fed fund liabilities is.421 years, what is the duration of the bank’s liabilities?(Do not round intermediate calculations. Round your answerto 4 decimal places. (e.g., 32.1616))

Duration (liabilities)

years

e-1.	What is GBI’s duration gap? (Do not round intermediatecalculations. Round your answer to 4 decimal places. (e.g.,32.1616))

Duration gap

years

e-2.	What is the expected change in equity value if all yieldsincrease by 200 basis points? (Enter your answer in dollarsnot in millions. Negative amount should be indicated by a minussign. Do not round intermediate calculations.)

Expected change in equity value

$

e-3.	Given the equity change in e-2. what is the expected new marketvalue of equity after the interest rate change? (Enter youranswer in dollars not in millions. Negative amount should beindicated by a minus sign. Do not round intermediatecalculations.)

New market value

$