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1. Followings are the information on expected inflows of principal and interest payment on assets and expected outflows of principal and interest payment on liabilities.

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1. Followings are the information on expected inflows of principal and interest payment on assets and expected outflows of principal and interest payment on liabilities. Time Cash inflow Cash outflow 1 1,275,600 1,295,500 2 746,872 831,454 341,555 123,897 4 62,482 1,005 5 9,871 The discount rate applicable on cash flow is 4.25%. If the total assets and total liabilities are Rs. 20,000,000 and Rs. 18,000,000 respectively, calculate the leverage adjusted duration gap of the bank. Moreover, if the interest rate rise to 4.75%, what will be the change in the value of the net worth of the bank. 1. Followings are the information on expected inflows of principal and interest payment on assets and expected outflows of principal and interest payment on liabilities. Time Cash inflow Cash outflow 1 1,275,600 1,295,500 2 746,872 831,454 341,555 123,897 4 62,482 1,005 5 9,871 The discount rate applicable on cash flow is 4.25%. If the total assets and total liabilities are Rs. 20,000,000 and Rs. 18,000,000 respectively, calculate the leverage adjusted duration gap of the bank. Moreover, if the interest rate rise to 4.75%, what will be the change in the value of the net worth of the bank

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