What Is the Effect on the Value of the FI's

question 92

Multiple Choice

What is the effect on the value of the FI's equity if interest rates decrease by 1 percent?

• A)Gain of $0.697 million.
• B)Gain of $0.338 million.
• C)Loss of $1.622 million.
• D)No change in equity.
• E)Loss of $0.605 million.
• [Refer to: 8-113]

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