A mining company owns two mines. These mines produce an ore that can be graded into two classes: regular grade and low grade. The company must produce at least 260 tons of regular-grade and 480 tons of low-grade ore per week. The first mine produces 4 tons of regular-grade and 16 tons of low-grade ore per hour. The second mine produces 20 tons of regular-grade and 10 tons of low-grade ore per hour. The operating cost of the first mine is $6000 per hour, and the operating cost of the second mine is $30,500 per hour. The first mine can be operated no more than 35 hours a week, and the second mine can be operated no more than 24 hours a week. How many hours per week should each mine be operated to minimize the cost

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.