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Assets Duration Market Value Rate Cash 0% 40,000 Bonds 1.8 160,000 400,000 7.50% Commercial Loans 13 % Liabilities and Equity Small Time Deposit Large CD's

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Assets Duration Market Value Rate Cash 0% 40,000 Bonds 1.8 160,000 400,000 7.50% Commercial Loans 13 % Liabilities and Equity Small Time Deposit Large CD's Transactions Accour 2 100,000 3.10% 1.5 120,000 5.20% 1 2.40% 320,000 Equity 60,000 38. Calculate the Bank Duration Gap 39. Calculate the Change in the Banks Economic Value of Equity when interest rates decrease by 19%. 40. Explain why the Economic Value of Equity changed when interest rate decreased by 1%

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