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Question
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.
Answer
This answer is hidden. It contains 116 characters.
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