Question 1 The following balance sheet information is available (amounts in thousands of dollars and duration in years) for a financial institution: Amount Duration T-bills $90 0.40 T-notes 55 0.75 T-bonds 176 5.43 Loans 2,724 7.25 Deposits 2,092 1.25 Federal funds 238 0.01 Equity 715 (a) What is the average duration of all the assets? (b) What is the average duration of all the liabilities? (c) What is the leverage adjusted duration gap? What is the interest rate risk exposure? (d) What is the forecasted impact on the market value of equity caused by a relative upward shift in the entire yield curve of 0.5 percent? (e) What variables are available to the financial institution to immunize the balance sheet? How much would the average duration of assets need to change to get DGAP equal to 0?