Question 16 (1 point) A bank has the following balance sheet: Assets Consumer Loans Commercial Loans Total Assets 100 300 400 Liabilities & Net Worth Deposits Equity Ttl Liab.& Net worth 376 24 400 The duration of the assets is 8 years and the duration of the liabilities is 3 years. What is the leverage-adjusted gap for this bank? AE = -[DA [(k)(DL)] [A] [AR/(1 + R)] -N = = -(DA-kD.)(A) / (-DF * PF) AF =-DF * (-N* Pf) * AR/(1+R) Total Assets The duration of the assets is 8 years and the duration of the liabilities is 3 What is the leverage-adjusted gap for this bank? AE = -(DA - [(k)(DL)] [A] [AR/(1 + R)] -N= = -(DA-KD)(A)/ (-DF * PF) AF = -DF * (-NF * PF) AR/(1+R) 07.18 years 5 years 5.18 years 6 years