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Amount is the dollar amount for that category in ten thousands (if you wish you may multiply each amount by 10,000). Loans are installment loans with monthly payments. Foreign borrowings, CDs and T-bills are bullet borrowings or assets. ALL bonds pay interest semi-annually. To limit confusion, some accounts are already marked FR and VR. FR means you should classify this account as Fixed Rate, VR as adjustable rate with the given reset periods. The duration of a variable rate account is simply the time until the next rate reset. For simplicity, assume 30 day months and a 360 day year on all calculations. Payments can be calculated using the given account balances and interest rates. You must use the appropriate compounding periods when working with the different accounts. Assume that all accounts that mature in three months or less have a duration equal to their maturity. The initial RONW or ROE is given as the cost number after the equity amount in the above table. For simplicity, use book value (the balance sheet value) for calculating the balance sheet weights. You must also follow the directions below for full credit; read them carefully: Find or calculate the durations of each account in months. Next calculate the average duration of the asset and liability portfolios in months. Then calculate the duration gap in years for Glacier Bank. Finally, show the predicted percent and dollar equity value change that should result from a 50 basis point increase in interest rates. SHOW ALL OF YOUR WORK, USING FORMULAS, NOT CALCULATOR BUTTONS NOR CELL REFERENCES! (10 points) You must use a spreadsheet; however, cell references and calculator buttons do not replace equations with numbers! Each spreadsheet must have both partners„ names PRINTED on each page of your answers. If you do not PRINT the names you will not get credit for anything on that page. Please pencil in your equations where appropriate. Because this is a take-home, neat and exact answers are expected. You may work in groups of one or two students but it is an honor code violation to work outside your group. See me if you have any questions.

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