The Numbers Provided Are in Millions of Dollars and Reflect

Multiple Choice

The numbers provided are in millions of dollars and reflect market values: 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.