1:Casio Merchants and Trust Bank, N.A., has a portfolio of loans and securities expected to generate cash inflows for the bank as follows: Espected Cash Rececipts Period in Which Receipts Are Expected $1,385,421 746,872 341,555 62,482 9,871 Current year Two years from today Three years from today Four years from today Five years from today Deposits and outflows: money market borrowings are expected to require the following cash Espected Cash Payments Period in Which Payments Will be Made $1,427,886 831,454 123,897 1,00s Current year Two years from today Three years from today Four years from today Five years from today rate applicable to the previous cash flows is 8 percent. what is the duration If the discount ofthe bank's portfolio o 2. Given the cash inflow and outflow figures in the previous problem for Casio Merchants and Trust Bank, If the bank has total assets of $125 million and total liabilities of $110 million What is the size of its Leverage adjusted duration gap? suppose interest rates began at a level of 8 percent and then suddenly rose to 9 percent., by how much would the value of Casio's net worth change as a result of this movement in interest rates? Suppose on the other hand, that interest rates decline from 8 percent to 7 percent What happens to the value of Cusio's net worth in this case and by how many dollars does it change? 3. A bank holds a bond in its investment portfolio whose duration is 13.5 years. Its current market price is $1020. While market interest rates are currently at 8 percent for comparable quality securities, a decrease to 7,25 percent is expected in the coming weeks. What changes (in percentage terms) will the bond's price experience if market interest rates change as anticipated