Hedge Row Bank has the following balance sheet (in millions):

Assets	$200	Liabilities	$180
		Equity	20
Total	$200	Total	$200

The duration of the assets is 6 years and the duration of the liabilities is 4.3 years. The bank is expecting interest rates to fall from 14 percent to 13 percent over the next year.

a.	What is the duration gap for Hedge Row Bank? (Round your answer to 2 decimal places. (e.g., 32.16))

Duration gap

years

b.	What is the expected change in net worth for Hedge Row Bank if the forecast is accurate? (Enter your answer in millions rounded to 3 decimal places. (e.g., 32.161))

Expected change in net worth

$ million

c.	What will be the effect on net worth if interest rates increase 100 basis points? (Negative amount should be indicated by a minus sign. Enter your answer in millions rounded to 3 decimal places. (e.g., 32.161))

Expected change in net worth

$ million

d.

If the existing interest rate on the liabilities is 10 percent and that on the assets is 14 percent, what will be the effect on net worth of a 1 percent increase in interest rates? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions rounded to 4 decimal places. (e.g., 32.1616))

Expected change in net worth

$ million