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The Average Duration of the Loans Is 10 Years

Question 97

Multiple Choice

The average duration of the loans is 10 years. The average duration of the deposits is 3 years. The average duration of the loans is 10 years. The average duration of the deposits is 3 years. What is the change in the value of the FI's equity for a 1 percent increase in interest rates from the current rates of 10 percent ? A) -$,979,091. B) -$16,318,182. C) -$15,979,091. D) +$16,318,182. E) +$979,091. What is the change in the value of the FI's equity for a 1 percent increase in interest rates from the current rates of 10 percent ?


A) -$,979,091.
B) -$16,318,182.
C) -$15,979,091.
D) +$16,318,182.
E) +$979,091.

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