2. Consider the following information about FG Bank. Amount ($ million) 10 20 50 Duration Maturity T-bills T-bonds loans Demand Deposits? Federal Funds borrowing Equity 3 month >1 year >1 year on demand55 1 year 0.15 4 0.01 2.5 10 10 A. B. C. D. E. What is the duration of demand deposit? (5 points) Calculate the one year repricing gap of the bank. (5 points) Calculate the asset duration of the bank. (5 points) Calculate the liability-adjusted duration gap. (5 points) If the entire yield curve shifts upward 0.5 percent bank's market value of equity? (5 points) = 0.005), what is the impact on the 1+ R 2. Consider the following information about FG Bank. Amount ($ million) 10 20 50 Duration Maturity T-bills T-bonds loans Demand Deposits? Federal Funds borrowing Equity 3 month >1 year >1 year on demand55 1 year 0.15 4 0.01 2.5 10 10 A. B. C. D. E. What is the duration of demand deposit? (5 points) Calculate the one year repricing gap of the bank. (5 points) Calculate the asset duration of the bank. (5 points) Calculate the liability-adjusted duration gap. (5 points) If the entire yield curve shifts upward 0.5 percent bank's market value of equity? (5 points) = 0.005), what is the impact on the 1+ R