Hadbucks National Bank current balance sheet appears below. All assets and liabilities are currently priced at par and pay interest annually.

-What is market value of the one-year bond if all market interest rates increase by 2 percent?
A)$60.000 million.
B)$60.566 million.
C)$59.444 million.
D)$58.899 million.

Question

Hadbucks National Bank current balance sheet appears below. All assets and liabilities are currently priced at par and pay interest annually.

-What is market value of the one-year bond if all market interest rates increase by 2 percent?
A)$60.000 million. 
B)$60.566 million. 
C)$59.444 million. 
D)$58.899 million.

Quizplus · Accepted Answer

The Answer of Hadbucks National Bank current balance sheet appears below. All assets and liabilities are currently priced at par and pay interest annually.

-What is market value of the one-year bond if all market interest rates increase by 2 percent?
A)$60.000 million. 
B)$60.566 million. 
C)$59.444 million. 
D)$58.899 million.

Hadbucks National Bank Current Balance Sheet Appears Below