Calculate the change in the banks market value of equity and the change in the value of

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Calculate the change in the bank’s market value of equity and the change in the value of the T-bond futures position for the bank if interest rates increase by 0.55 percent from the current rate of 6 percent on the T-bond and increase 0.65 percent from the current rate of 8 percent on the balance sheet assets and liabilities.

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Financial Institutions Management

ISBN: 9780078034800

8th Edition

Authors: Anthony Saunders, Marcia Cornett

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