A Financial Institution has assets of $10,000 invested in a 20-year, 9% annual coupon Treasury bond selling at par. The duration of this bond has been estimated at 8 years. The assets are financed with equity and a $7,000 capital note with a maturity of two years and 6% coupon rate selling at par ($1,000). A. What is the leverage adjusted duration gap of this financial institution? B. What is the impact on equity value if interest rates decrease by 50 basis points? C. A DI has the following assets in its portfolio:| $20 million in cash reserves with the Fed, $45 million in T-bills, $85 million in mortgage loans. If the DI has to liquidate the assets today, it will receive $92 per $100 of face value of the T-bills $80 per $100 of face value of the mortgage loans. Liquidation at the end of one month (closer to maturity) will produce $100 per $100 of face value of the T-bills and $95 per $100 of face value of the mortgage. Calculate the one-month liquidity index for this DI using the above information. A Financial Institution has assets of $10,000 invested in a 20-year, 9% annual coupon Treasury bond selling at par. The duration of this bond has been estimated at 8 years. The assets are financed with equity and a $7,000 capital note with a maturity of two years and 6% coupon rate selling at par ($1,000). A. What is the leverage adjusted duration gap of this financial institution? B. What is the impact on equity value if interest rates decrease by 50 basis points? C. A DI has the following assets in its portfolio:| $20 million in cash reserves with the Fed, $45 million in T-bills, $85 million in mortgage loans. If the DI has to liquidate the assets today, it will receive $92 per $100 of face value of the T-bills $80 per $100 of face value of the mortgage loans. Liquidation at the end of one month (closer to maturity) will produce $100 per $100 of face value of the T-bills and $95 per $100 of face value of the mortgage. Calculate the one-month liquidity index for this DI using the above information