What is the effect of a 100 basis point increase in interest rates on the market value of equity of the FI? Use the duration approximation relationship.Assume r = 4 percent.
A)-27.56 million.
B)-28.01 million.
C)-29.85 million.
D)-31.06 million.

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Change in the market value of equity, leverage-adjusted duration gap
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What Is the Effect of a 100 Basis Point Increase