6. X Bank holds Assets and Liabilities whose average durations and dollar amounts are as shown in the following table: Asset and Liability Items Avg. duration in years Dollar amount in millions Municipal Bonds $ $80 Non-deposit Borrowings 4.60 350 Consumer Loans 9 190 Business Loans 14 540 Deposits 5.8 580 Subordinated Notes 2.8 65 Treasury Bonds 10.5 100 1. Calculate the weighted-adjusted duration of X's assets portfolio and liability portfolio. (10 points) b. What is the leverage-adjusted duration gap? (5 points) 6. If the ALM team speculatively take this position, what do you think their expectations are regarding the future market rates? (7 points) d. What happens to the net worth of the bank of the interest rates increase from 8% lo 99? (8 points) 6. X Bank holds Assets and Liabilities whose average durations and dollar amounts are as shown in the following table: Asset and Liability Items Avg. duration in years Dollar amount in millions Municipal Bonds $ $80 Non-deposit Borrowings 4.60 350 Consumer Loans 9 190 Business Loans 14 540 Deposits 5.8 580 Subordinated Notes 2.8 65 Treasury Bonds 10.5 100 1. Calculate the weighted-adjusted duration of X's assets portfolio and liability portfolio. (10 points) b. What is the leverage-adjusted duration gap? (5 points) 6. If the ALM team speculatively take this position, what do you think their expectations are regarding the future market rates? (7 points) d. What happens to the net worth of the bank of the interest rates increase from 8% lo 99? (8 points)