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]

Question

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The Answer of 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]

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