The Following Information Is About Current Spot Rates for Second

question 86

Multiple Choice

The following information is about current spot rates for Second Duration Savings' assets (loans) and liabilities (CDs) . All interest rates are fixed and paid annually. Use the duration model to approximate the change in the market value (per $100 face value) of two-year loans if interest rates increase by 100 basis points.

• A)-$1.756
• B)-$1.775
• C)+$98.24
• D)-$1.000
• E)+$1.924

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Definitions:

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brain down the back, transmitting nerve signals between the brain and the rest of the body.

Human Childbirth

The process of delivering a baby from the uterus to the outside world, typically through stages of labor and delivery.

Birth Canal

The passageway comprising the cervix, vagina, and vulva through which a fetus travels during birth.

Cultural Practices

The shared activities, rituals, and norms that define the lifestyle of a particular group or society.