1.6 years 20 years Balance Sheet of the Bank Assets Market Value Duration Overnight money 50 million 0 Treasury Bills 100 million 1 year Inventory Loans 125 million Industrial Loans 75 million 3 years Mortgage Loans 150 million Value(assets) = 500 million D(assest) = ??? years Liabilities Checking &Savings Acct 210 million 0 CD's 150 million 2 Long-term Bonds 90 million 10 Value(liabilities) = 450 million D(liab.) = ??? years Equity E= 50 million 24. Assume the average interest rate (y) is currently 5%; if y suddenly jumps to 6%, what would happen to the value of the Bank's equity? A. The equity value would increase by $10.34 million B. The equity value would decrease by $14.72 million C. The equity value would decrease by $19.67 million D. The equity value would decrease by $22.16 million E. The equity value would increase by $12.75 million