1. An FI has financial assets of $800M and equity of $50M. If the duration of assets is 1.21 years and the duration of all liabilities is 0.25 years, what is the leverage-adjusted duration gap?1 1 1 2. The 1% DEAR of a bank's trading portfolio has been estimated at $5,000. It is assumed that the daily earnings are independently and normally distributed. What is the 5-day 1% VAR? 1 3. Calculate the Macaulay duration of a two-year corporate bond paying 6 percent interest annually, selling at par. Principal of $20,000,000 is due at the end of two years. 1 1 4. AnFlfinancesa$250,0002-yearfixed-rateloanwitha$200,0001-yearfixed- rateCD.Usetherepricing model to determine: a. The Fi's repricing (or funding) gap using a 1-year maturity bucket (2 points), and b. The impact of a 100 basis point (0.01) decrease in interest rates on the Fi's annual net interest income? 1 5. What is the least important factor determining bank cy, according to the Altman Z-score model? Why did you give this answer? 1 1 6. If the current interest rate on one-year CD is 6 percent today and the rate on a two-year maturity prime-rated CD is 7 percent today, the implied forward rate on a one-month CD to be delivered one month from today is? 1