a. Calculate the leverage-adjusted duration gap of an FI that has assets of $2.7 million invested in 30-year, 12 percent semiannual coupon Treasury bonds selling at par and whose duration has been estimated at 10.11 years. It has liabilities of $1,070,000 financed through a two-year, 7.00 percent semiannual coupon note selling at par. b. What is the impact on equity values if all interest rates fall 20 basis pointsthat is, R/(1 + R/2) = 0.0020?

(For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))