The Numbers Provided by Fourth Bank of Duration Are in Thousands

The numbers provided by Fourth Bank of Duration are in thousands of dollars. Notes: All Treasury bills have six months until maturity. One-year Treasury notes are priced at par and have a coupon of 7 percent paid semiannually. Treasury bonds have an average duration of 4.5 years and the loan portfolio has a duration of 7 years. Term deposits have a 1-year duration and the Interbank deposits duration is 0.003 years. Fourth Bank of Duration assigns a duration of zero (0) to demand deposits. If the relative change in interest rates is a decrease of 1 percent, calculate the impact on the bank's market value of equity using the duration approximation.
(That is, ΔR/(1 + R) = -1 percent)

A) The bank's market value of equity increases by $325,550.
B) The bank's market value of equity decreases by $325,550.
C) The bank's market value of equity increases by $336,500.
D) The bank's market value of equity decreases by $336,500.
E) There is no change in the bank's market value of equity.