Multiple Choice
What is the effect of a 100 basis point increase in interest rates on the market value of equity of the FI? Use the duration approximation relationship.Assume r = 4 percent.
A) -27.56 million.
B) -28.01 million.
C) -29.85 million.
D) -31.06 million.
E) -33.76 million.
[Refer to: 9-121]
Correct Answer:
Verified
Correct Answer:
Verified
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