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Question
If the loan portfolio consists of a five-year, 10 percent annual coupon loan selling at par, what is the market, or economic, value of capital if interest rates increase 1 percent?
A. $35 million.
B. -$155 million.
C. $7 million.
D. -$7 million.
E. $0.
Answer
This answer is hidden. It contains 108 characters.
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