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The average duration of the loans is 13 years. The average duration of the deposits is 3 years. Consumer Loans 50 Deposits 235 Commercial Loans
The average duration of the loans is 13 years. The average duration of the deposits is 3 years.
| Consumer Loans | 50 | Deposits | 235 |
| Commercial Loans | 200 | Equity | 15 |
| Total Assets | 250 | Total Liabilities & Equity | 250 |
Based on the above information, what is the leveraged-adjusted duration gap of the bank's portfolio? What is the change in the value of the FI's equity for a 1 percent increase in interest rates from the current rates of 10 percent ?
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