a) What's the duration of Assets?

b) What's the duration of Liabilities

c) If all rates fall by 100 Basis Points, (R/1+R) = -100 Basis points or 1%, what is going to be the change in Equity?

For c, the possible answers are

i) -4,43 million

ii) +4,43 million

iii) +3,20 million

iv) +2,42 million

v) +1,03 million

vi) +0,00 million

Value(millions) Rate Duration(years) 50 750 200 12% 9% 4 10 Assets Cash Loans Euro-Bonds Liabilities Deposits Certificates of Deposits Equity 1 600 300 100 7% 8% 4 Value(millions) Rate Duration(years) 50 750 200 12% 9% 4 10 Assets Cash Loans Euro-Bonds Liabilities Deposits Certificates of Deposits Equity 1 600 300 100 7% 8% 4