Calculate each of the scenarios below. Show all your work.

21. If all rates decline by 90 basis points, calculate the change in the market value of equity (i.e., R/1+R is 90 basis points or 0.0090). (2 points)

22. If all rates increased by 90 basis points, calculate the change in the market value of equity (i.e., R/1+R is 90 basis points or 0.0090). (2 points)

the moun y? (2 points) duration=[tch! 0.115) 3.144 Price = $922.44 7/Sum of PVs =Duration 2.36/8922.49 = 3.5t ified Duration=3.51/(1+0 1151 Duration Gap and Hedging Problems (31 points total) Use the following information to answer questions 18 - 20. Rate Duration Amount $ 150 million 1,500 million 350 million 12% 9% Assets Cash Loans Treasuries Liab & Eq Deposits CDs Equity 1.75 years 7.00 years $ 700 million 1,150 million 150 million 7% 8% 1.75 years 2.50 years 18. Calculate the duration of assets. Show all your work. (3 points) Duration of Assels = 1.75 years +7 -8.75 years