A bank has $1,000,000,000 (1 billion) in assets with a weighted-average duration of 2.54 years and $925,000,000 (925 million) in liabilities with a weighted-average duration of 2.22 years. Calculate the leverage-adjusted duration gap and state the bank's exposure. AE = -[DA-DLK] [A] [AR/(1+R)] k = TL/TA = 92.5% O-.8623 years; exposed to interest rate decreases +.3200 years; exposed to interest rate decreases +1.0374 years; exposed to interest rate increases +.4865 years; exposed to interest rate increases