A financial institution has the following market value balance sheet structure:

Assets Liabilities and Equity

Cash $ $3,000$ Certificate of deposit $ $11,$o$00$

Bond $10,000$ Equity $2,000$

Total assets $ $13,000$ Total liabilities and equity $ $13,000$ The bond has a $10-$year maturity and a fixed$-$rate coupon of $10$ percent at the end of each year, and a par value of $10,000.$ The certificate of deposit has a $1-$year maturity and a $6$ percent fixed rate of interest. The FI expects no additional asset growth. Assuming that market interest rates increase $2$ percent, the bond will have a value of $$8,934$ at the end of year $1.$ What will be the market value of the equity for the FI$?$ Assume that all of the net interest income is used to cover opearting expenses or is distributed as dividends. A$.)2,934$ B$.)934$ C$.)2,000$ D$.)1,066$ E$.)660$