9-117 What Is the Effect of a 100 Basis Point

question 92

Multiple Choice

9-117 What is the effect of a 100 basis point increase in interest rates on the market value of equity of the FI? Use the duration approximation relationship.Assume r = 4 percent.

• A)-27.56 million.
• B)-28.01 million.
• C)-29.85 million.
• D)-31.06 million.
• E)-33.76 million.

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Definitions:

Ventral Root

Motor (efferent) root of a spinal nerve.

Spinal Cord

The spinal cord is a long, thin, tubular structure made up of nervous tissue, which extends from the brain and is encased in the vertebral column.

Spinal Nerves

Nerves that emerge from the spinal cord, carrying motor, sensory, and autonomic signals between the spinal cord and the body.

Subarachnoid Space

The space between the arachnoid mater and pia mater around the brain and spinal cord, filled with cerebrospinal fluid that cushions the central nervous system.