20-135 If the loan portfolio consists of a five-year, 10 percent annual coupon loan selling at par, what is the market, or economic, value of capital if interest rates increase 1 percent? 20-19 Chapter 20 - Capital Adequacy a. b. c. d. e. Answer: $35 million. -$155 million. $7 million. -$7 million. $0. 20-135 If the loan portfolio consists of a five-year, 10 percent annual coupon loan selling at par, what is the market, or economic, value of capital if interest rates increase 1 percent? 20-19 Chapter 20 - Capital Adequacy a. b. c. d. e. Answer: $35 million. -$155 million. $7 million. -$7 million. $0