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.
Correct Answer:
Verified
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