If Interest Rates Increase 100 Basis Points the Predicted Dollar

question 11

Multiple Choice

If interest rates increase 100 basis points the predicted dollar change in equity value will equal

• A) $10,171,698
• B) -$10,171,698
• C) $12,724,528
• D) -$12,724,528
• E) $4,928,756 -[2.4 - ((850 - 82)/850) x 0.9] x 0.01/1.06 x 850,000,000 = -$12,724,528

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