6.5470 years 8.4 years 3.1983 years 12.7931 years

2)Assume the same information [Question Set 2] as in the previous question.

What is the average duration of all the liabilities

(Du)?

Group of answer choices 0.8989 years

0.6878 years 0.8489 years 1.01 years 3)

Assume the same information [Question Set 2] as

in the previous question.

What is the leverage-adjusted duration gap?

Group of answer choices

6.0207 years

5.7742 years

5.8592 years

12.1435 years

3)

Assume the same information [Question Set 2] as

in the previous question.

What is the forecasted impact on the market value

of equity (AE) caused by a relative upward shift in

the entire vield curve of 0.5 percent [i.e.,

Ay/(1+y) = 0.0050]?

Group of answer choices

-$89,206.32 -$759,603 $89,206.32 $759,603

The following balance sheet information is available (amounts in thousands of dollars and duration in years) for a financial institution: Asset T-bills T-notes T-bonds Loans Total Liabilities and Equity Deposits Federal funds Equity Total Amount $90 55 176 2,724 3,045 2,092 238 715 3,045 Duration 0.50 0.90 7.00 1.00 0.01 Treasury bonds are five-year maturities paying 6 percent semiannually and selling at par. By applying the Macaulay duration formula, we get the duration of the T- bond portfolio equals 4.3931 years. What is the average duration of all the assets (DA)? Please use your intermediate numbers to be at least 4 decimals