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8. A financial institution has the following market value balance sheet structure: risk? used to cover operating expenses or dividends. d. If market interest rates

8. A financial institution has the following market value balance sheet structure: risk? used to cover operating expenses or dividends. d. If market interest rates had decreased 100 basis points by the end of year 1 , would the market value of equity be higher or lower than $1,000 ? Why? e. What factors have caused the changes in operating performance and market value for this FI

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