Hedge Row Bank has the following balance sheet (in millions):. Hedge Row Bank has the following balance sheet (in millions):ÿÿÿÿÿÿAssets$200ÿÿÿLiabilities$180ÿÿÿÿÿEquity20ÿÿÿÿÿTotal$200ÿÿÿTotal$200ÿÿÿThe duration of the assets is 6 years and the duration of the liabilities is 4.3 years. The bank is expecting interest rates to fall from 14 percent to 13 percent over the next year.a.What is the duration gap for Hedge Row Bank?ÿ(Round your answer to 2 decimal places. (e.g., 32.16))ÿÿDuration gapÿyearsÿb.What is the expected change in net worth for Hedge Row Bank if the forecast is accurate?ÿ(Enter your answer in millions rounded to 3 decimal places. (e.g., 32.161))ÿÿExpected change in net worth$ÿÿmillionÿÿc.What will be the effect on net worth if interest rates increase 100 basis points?
Hedge Row Bank has the following balance sheet (in millions):
