The assets and liabilities structure of Greezy Bank as at 30^th June is presented in Table 1 below:

Table 1: Asset and Liability Structure

Assets and Liabilities	Market Value ($Millions)	Duration (Years)	Rate of Return (%)
Cash	200
Loans and Advances	800	5.0	8.0
Corporate Bonds	1000	5.0	6.0
Sovereign Bonds	800	10.0	5.0
Long Term Notes	800	7.0	3.0
Certificate of Deposits	1200	1.5	2.0
Brokered Deposits	400	0.5	1.0
Equity	400

Based on the data provided in Table, 1, answer the following questions:

1. What is the weighted average duration of the assets and liabilities of Greezy Bank as at 30^th June?

2. What is the leverage adjusted duration gap of Greezy Bank?

3. What is the expected net interest income for Greezy Bank for the period ending 30^th June?

4. What would be the change in the Economic value of Equity of Greezy Banks as at 30^th June if interest rates were to fall by 1%?

5. What is your inference on the duration gap and EVE of Greezy Bank during these periods?

6. From the results obtained in (b) in what way can you immunize the portfolio?

(3 + 4 +2 +3 +2 +2 = 16)