Solved

If All Interest Rates Decline 90 Basis Points (ΔR/(1

Question 117

Multiple Choice

If all interest rates decline 90 basis points (ΔR/(1 + R) = −90 basis points) , what is the change in the market value of equity?

A) -$4.4300 million
B) +$3.9255 million
C) +$4.3875 million
D) +$2.5506 million
E) +$0.0227 million
[Refer to: 9-115]

Related Questions

Q112: Calculate the leverage-adjusted duration gap to four

Q113: What is the leverage-adjusted duration gap?<br>A)0.605 years.<br>B)0.956

Q114: Attempts to satisfy the objectives of shareholders

Q115: Buying a fixed-rate asset whose duration is

Q116: What is the price of the bond

Q118: What is the duration of the assets?<br>A)0.708

Q119: Immunizing net worth from interest rate risk

Q120: What is the price of the bond

Q121: Immunizing the balance sheet to protect equity

Q122: The error from using duration to estimate