A bank only asset is a peculiar 3-year, 6% $100 million bond where payments are paid at the end of year 2 and 3. The Term structure is flat with all yields equal to 6%. The banks liability includes 1 year debt that promises to pay out $84.8 after a year, implying that the debt value today is 84.8/1.06 = $80. The banks equity value is which of the following?

a) decreases by about $3mm

b) decreases by about $1mm

c) increases by about $3mm

d) increases by about $1mm

e) decrases by about $2mm