Question: Using excel spreadsheet Use the following balance sheet information to answer this question. ( LG 22-3 ) Balance Sheet ( dollars in thousands ) and

Using excel spreadsheet

  1. Use the following balance sheet information to answer this question. (LG 22-3)

    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

    1. What is the average duration of all the assets?

    2. What is the average duration of all the liabilities?

    3. What is the FIs leverage-adjusted duration gap? What is the FIs interest rate risk exposure?

    4. 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?

    5. 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?

Please show formulas in excel

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