Calculate the leverage-adjusted duration gap of a commercial bank that has assets of $2.4 million invested in 15-year Treasury bonds and whose duration has been estimated at 8.60 years. It has liabilities of $1.5 million financed through a two-year, 6.00 percent annual coupon note selling at par. A. What is the leverage adjusted duration gap? (Hint: You need to calculate the duration of liabilities first.) B. What is the impact on equity values if all interest rates increase 50 basis points that is, AR/(1 +R) = 0.0050?