The change in the market value of the equity as a percentage of total assets for a bank with a duration gap of 2.24 assuming interest rates increase 2% from 10% equals:
A) -2.51 percent
B) -2.00 percent
C) +2.51 percent
D) +2.00 percent

Question

Quizplus · Accepted Answer

The Answer of The change in the market value of the equity as a percentage of total assets for a bank with a duration gap of 2.24 assuming interest rates increase 2% from 10% equals:
A) -2.51 percent
B) -2.00 percent
C) +2.51 percent
D) +2.00 percent

The Change in the Market Value of the Equity as a Percentage