Use the following balance sheet (in millions of dollars) for a bank and assume that 20% of fixed-rate mortgages, 10 % of checkable deposits, and 10% of savings deposits are rate-sensitive. Assume all variable-rate mortgages are rate-sensitive. DUR stands for duration

Consider assets and liabilities of less than a year to maturity to be rate-sensitive (one-year maturity bucket).

a. Calculate the repricing (funding) gap for a one-year maturity bucket.

b.Calculate the change in net interest income in the first year for a decrease in interest rate from 5% to 4% (be sure to note whether income increases or decreases).

c. Calculate the average duration of assets.

d. Calculate the average duration of liabilities.

e. Calculate the leverage-adjusted duration gap.

f. Calculate the change in net worth (capital) if the interest rate decreases from 5% to 4%?