8-27 The change in economic value of a fixed-rate liability for a decrease in interest rates is considered to be good news.

Name: 8-27 The change in economic value of a fixed-rate liability for a decrease in interest rates is considered to be good news.
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A decrease in interest rates increases the present value of fixed-rate liabilities, which is generally considered bad news for the holder of the liability as it increases the amount they owe.

8-27 the Change in Economic Value of a Fixed-Rate Liability