The numbers provided are in millions of dollars and reflect market values:

Cash		20	Deposits	historical avg. maturity = 4 years; historical average duration = 3.5 years	200
T-Bills	30 days (4.5 percent, par)	50	Certificates of Deposit	avg. maturity = 6 months; avg. duration = 6 months	150
T-Bills	91 days (5.0 percent, par)	60	Short-term Debt	avg. maturity = 4 years	150
Commercial Loans	avg. maturity = 9.0 years; avg. duration = 7.5 years	300	Long-term debt	avg. maturity = 15 years; average duration = 12 years	200
Consumer Loans	avg. maturity = 6.0 years; avg. duration = 4.0 years	200	Equity		130
Mortgage Loans - Fixed rate	avg. maturity = 30 years; avg. duration = 25 years	150
Mortgage Loans - Adjustable	avg. maturity = 30 years; interest rate reset = 6 months	50
Total Assets:	830	Total Liabilities & Equity:	830

a. The short-term debt consists of 4-year bonds paying an annual coupon of 4 percent and selling at par. What is the duration of the short-term debt?

b. What is the weighted average duration of the assets of the FI?

c. What is the weighted average duration of the liabilities of the FI?

d. What is the leverage-adjusted duration gap of the FI? Briefly discuss your results.