Duration Bank Has the Following Assets and Liabilities as of Year-End

question 11

Multiple Choice

Duration Bank has the following assets and liabilities as of year-end. All assets and liabilities are currently priced at par and pay interest annually. What is the change in the value of its assets if all interest rates decrease by 1 percent?

• A)Approximately $1.613 million.
• B)Approximately $2.297 million.
• C)Approximately -$1.937 million.
• D)Approximately $2.209 million.
• E)Approximately $2.524 million.