What Is the Impact on the FI's Equity of a 2

Multiple Choice

What is the impact on the FI's equity of a 2 percent overall increase in market interest rates on all fixed-rate instruments?

A) Equity rises by $4.318 million.
B) Equity declines by $2.912 million.
C) Equity rises by $2.060 million.
D) Equity declines by $1.880 million.
E) Equity does not change. [Refer to: 8-105]