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Question 67

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Use the following table to answer the question :
Use the following table to answer the question :    -Assuming that the average duration of its assets is five years,while the average duration of its liabilities is three years,then a 5 percentage point increase in interest rates will cause the net worth of First National to decline by ________ of the total original asset value. A) 5 percent B) 10 percent C) 15 percent D) 25 percent
-Assuming that the average duration of its assets is five years,while the average duration of its liabilities is three years,then a 5 percentage point increase in interest rates will cause the net worth of First National to decline by ________ of the total original asset value.


A) 5 percent
B) 10 percent
C) 15 percent
D) 25 percent

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