11. Use the following balance sheet information to answer this question. (LG 23-3)

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

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

c) What is the FIs leverage-adjusted duration gap? What is the FIs interest rate risk exposure?

d) If the entire yield curve shifted upward 0.5 percent (i.e., , what is the impact on the FIs market value of equity?

e) If the entire yield curve shifted downward 0.25 percent (i.e., ), what is the impact on the FIs market value of equity?

Balance Sheet (dollars in thousands) and Duration (in years) Duration Amount T-bills 0.5 $ 90 T-notes 0.9 55 T-bonds 4.393 176 Loans 7 2.724 1 2.092 Deposits Federal funds 0.01 Equity 238 715