The Go Broncos Bank Has the Following Questions It Would

The Go Broncos Bank has the following questions it would like to ask you about its bank. The bank's balance sheet is as follows:
$\begin{array}{llrl}\text { Assets: } & & & \text { Ave. Duration } \\\text { Securities } & 3 \% \text { rate } & \$ 150 \text { million } & \text { 1 year } \\\text { Long-term Loans } & \text { 6\% rate } & \underline{\$ 850 \text { million }} &\text { 6 years } \\\quad \text { Total Assets } & & \$ 1000 \text { million } & \\\text { Liabilities \& Equity } & & &\\\text { Short-term Deposits } & 1 \% \text { rate } & \$ 600 \text { million } &1 \text { year } \\\text { Certificates of Deposit } & 3 \% \text { rate } & \underline{\$ 300 \text { million }} & 3 \text { year } \\\text { Total Liabilities } & & \$ 900 \text { million }\\\text { Equity } && \underline{\$ 100 \text { million }} \\\text { Total Liab. \& Equity } && \$ 1000 \text { million }\end{array}$
a. What is the Bank's Duration of Assets and Duration of Liabilities and its Duration gap (D-Gap)? What does the duration gap tell you about the bank's interest rate risk?
b. What is the expected % change in the value of equity with a rise in rates of 1%? Use an average loan rate of 5.5%.