Use the following balance sheet information to answer this question. (LG 22-3) T-bills T-notes T-bonds Loans Deposits Federal funds Equity Balance Sheet ($ thousands) and Duration (in years) Duration Amount 0.5 $ 90 0.9 55 4.393 176 7 2,724 1 2,092 0.01 238 715

a. What is the average duration of all the assets?

b. What is the average duration of all the liabilities?

c. What is the FI's leverage-adjusted duration gap? What is the FI's interest rate risk exposure?

d. If the entire yield curve shifted upward 0.5 percent (i.e.. AR/(1+ R) = .0050), what is the impact on the FI's market value of equity?

e. If the entire yield curve shifted downward 0.25 percent (i.e., AR/(1+R) = .0025), what is the impact on the FI's market value of equity?