What is the effect on the value of the FI's equity if interest rates decrease by 1 percent?
A)Gain of $0.697 million.
B)Gain of $0.338 million.
C)Loss of $1.622 million.
D)No change in equity.
E)Loss of $0.605 million.

Name: What is the effect on the value of the FI's equity if interest rates decrease by 1 percent? A)Gain of $0.697 million. B)Gain of $0.338 million. C)Loss of $1.622 million. D)No change in equity. E)Loss of $0.605 million.
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Question

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The value of equity will fall $604,853.

What Is the Effect on the Value of the FI's