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Consider the following. a . Calculate the leverage - adjusted duration gap of an F I that has assets of $ 2 . 2 million

Consider the following.
a. Calculate the leverage-adjusted duration gap of an FI that has assets of $2.2 million invested in 25 year, 10 percent semiannual coupon Treasury bonds selling at par and whose duration has been estimated at 10.06 years. It has liabilities of $1,020,000 financed through a two-year, 6.25 percent semiannual coupon note selling at par.
b. What is the impact on equity values if all interest rates fall 20 basis points - that is,R1+R2=-0.0020?
(For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g.,32.16))
\table[[,,,],[a.,Leveraged adjusted duration gap,,years],[b.,Change in net worth using leveraged adjusted duration gap,,]]
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