Multiple Choice
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
Correct Answer:

Verified
Correct Answer:
Verified
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