The Raymond Burr National Bank Has $1,000 in Assets with an Average

Multiple Choice

The Raymond Burr National Bank has $1,000 in assets with an average duration of 5 years.This bank has $800 in liabilities with an average duration of 6.25 years.Market interest rates start at 6 percent and fall by 1 percent.What is the change in net worth of this bank?

A) $11.29
B) -$11.29
C) $0
D) -$22.22
E) $22.22