-If the Loan Portfolio Consists of a Five-Year, 10 Percent

question 26

Multiple Choice

$$\begin{array} { l l l l } \text { Securities (at par) } & \$ 250 & \text { Deposits } & \$ 975 \\\text { Loans (at par) } & \$ 760 & \text { Capital } & \$ 35\end{array}$$
-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.

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Definitions:

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The environmental and social impact of the fashion industry, including factors like resource consumption and labor conditions.

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