A high school football team arrives to practice one day to find that all of their equipment is missing. The coach wants to make sure he has considered every possibility before he the principal. Which of the following pieces of evidence would be relevant to help explain what happened to the equipment? a. The school board has instituted budget cuts to the football program. b. Many of the players' parents have raised concerns over the potential for head injuries in contact football. c. The football team often exchanges pranks with their biggest rival, a high school team from the next town. d. The equipment has failed a recent safety inspection.

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.