Multiple Choice
If a bank has a duration gap of 2 years,then a rise in interest rates from 6 percent to 9 percent will lead to
A) a rise in the market value of its net worth of 5.66 percent.
B) a rise in net interest income of 5.66 percent.
C) a fall in the market value of its net worth of 5.66 percent.
D) a fall in net interest income of 5.66 percent.
E) an unknown change.
Correct Answer:
Verified
Correct Answer:
Verified
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