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Use the Following Bank Information for Questions -If Interest Rates Rise 1% for All Assets and Liabilities

question 37

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Use the following bank information for questions .
 Market  Value  Rate  Duration  (Years)   Liabilities  and  Equity  Market  Value  Rate  Duration  (Years)   Cash $150Time Deposits $5004%1.25 Loans $67510%2.50 CDs $4006%3.00 T-Bonds $1755%5.00 Equity $100 Total $1,000$1,000\begin{array}{|l|l|l|l|l|l|l|l|}\hline &\begin{array}{c}\text { Market } \\\text { Value }\end{array} &\text { Rate } & \begin{array}{c}\text { Duration } \\\text { (Years) }\end{array} & \begin{array}{c}\text { Liabilities }\\\text { and } \\\text { Equity }\end{array} & \begin{array}{c}\text { Market } \\\text { Value }\end{array} & \text { Rate } & \begin{array}{c}\text { Duration } \\\text { (Years) }\end{array} \\\hline\text { Cash } & \$ 150 & && \text {Time Deposits } & \$ 500 & 4 \% & 1.25 \\\hline \text { Loans } & \$ 675 & 10 \% & 2.50 &\text { CDs } & \$ 400 & 6 \% & 3.00 \\\hline\text { T-Bonds }&\$175&5\%&5.00&\text { Equity }&\$100&&\\\hline\text { Total }&\$1,000&&&&\$1,000\\\hline\end{array}
-If interest rates rise 1% for all assets and liabilities, what is the approximate expected change in the economic value of equity?

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Definitions:

Tensor Fascia Lata

A muscle of the thigh that helps in stabilizing and moving the hip and knee, encased in the fascia lata tissue.

Iliopsoas

A major hip flexor muscle group, consisting of the iliacus and psoas major muscles, important for lifting the thigh and trunk stability.

Rotator Cuff

A group of muscles and tendons that surround the shoulder joint, maintaining stability and allowing rotational movement.

Lateral Border

The outermost edge or boundary of an anatomical structure, situated farthest from the midline of the body.

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