-If All Interest Rates Decline 90 Basis Points (?R/(1

question 37

Multiple Choice

$$\begin{array} { | l | r | c | c | } \hline \text { Assets } & \text { Amount } & \text { Rate } & \text { Duration } \\\hline \text { Cash } & \$ 75 \text { million } & & \\\hline \text { Loans } & \$ 750 \text { million } & 12 \text { percent } & 1.75 \text { years } \\\hline \text { Treasuries } & \$ 175 \text { million } & 9 \text { percent } & 7.00 \text { years } \\\hline \text { Liabilities and Equity } & & & \\\hline \text { Time Deposits } & \$ 350 \text { million } & 7 \text { percent } & 1.75 \text { years } \\\hline \text { CDs } & \$ 575 \text { million } & 8 \text { percent } & 2.50 \text { years } \\\hline \text { Equity } & \$ 75 \text { million } & & \\\hline\end{array}$$
-If all interest rates decline 90 basis points (?R/(1 + R) = -90 basis points) , what is the change in the market value of equity?

• A)-$4.4300 million
• B)+$3.9255 million
• C)+$4.3875 million
• D)+$2.5506 million
• E)+$0.0227 million

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Definitions:

Ancestral Allele

The original version of a gene that existed in a common ancestor of a species or a group of species.

EPAS1 Allele

A genetic variant associated with adaptation to high-altitude environments, often studied in populations living in the Himalayas.

Denisovan Genome

The genetic blueprint of the Denisovans, an extinct species of archaic humans, obtained from ancient DNA samples.

Introgression

The transfer of genetic material from one species to another through hybridization and backcrossing, leading to the incorporation of foreign genes into a population.