Multiple Choice
What is the effect on the value of the FI's equity if interest rates decrease by 1 percent?
A) Gain of $0.697 million.
B) Gain of $0.338 million.
C) Loss of $1.622 million.
D) No change in equity.
E) Loss of $0.605 million.
[Refer to: 8-113]
Correct Answer:
Verified
Correct Answer:
Verified
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