Calculate the Leverage-Adjusted Duration Gap to Four Decimal Places and State

question 112

Multiple Choice

Calculate the leverage-adjusted duration gap to four decimal places and state the FI's interest rate risk exposure of this institution.

• A)+1.0308 years; exposed to interest rate increases.
• B)−0.3232 years; exposed to interest rate increases.
• C)+0.8666 years; exposed to interest rate increases.
• D)+0.4875 years; exposed to interest rate increases.
• E)−1.3232 years; exposed to interest rate decreases.
• [Refer to: 9-115]

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