A bank has liabilities of $$925$ million, equity of $$88$ million, a duration gap of $2\mathrm{.}35$ years and the starting average interest rate is $10\%.$ What approximate basis point change in interest rates would theoretically make the institution's equity equal to zero?

Question $25$Answer

a$.$

$-407$

b$.$

$-445$

c$.$

$407$

d$.$

$426$

e$.$

$445$