Loyalty programs like DD Perks can get customers engaged with the brand and incentivize them to stay loyal. But loyalty programs alone are relatively easy for competitors to match and top, and thus they often aren’t sufficient to retain customers and thwart switching. In addition to reward programs, what other factors drive loyalty to a brand, and which of these do you presently see in play at Dunkin’ Donuts? Is there more that Dunkin’ could do to increase customer loyalty?

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.