Use the following balance sheet information to answer this question.

Balance Sheet (dollars in thousands) and Duration (in years)

Duration Amount

T-bills 0.5 90

T-notes 0.9 55

T-bonds 4.393 176

Loans 7 2,724

Deposits 1 2,092

Federal funds 0.01 238

Equity 715

A )What is the average duration of all the assets?

B )What is the average duration of all the liabilities?

C )What is the FIs leverage-adjusted duration gap? What is the FIs interest rate risk exposure?

D )If the entire yield curve shifted upward 0.5 percent (i.e., R/(1 + R) = 0.0050), what is the impact on the FIs market value of equity?

E) If the entire yield curve shifted downward 0.25 percent (i.e., R/(1 + R) = 0.0025), what is the impact on the FIs market value of equity?