Assume that a bank manager immunized the balance sheet against interest rate risk by choosing the appropriate assets and liabilities when

market interest rate was 10%. The net worth of the bank will

when the market interest rate suddenly increases from 10%

to 11%. After the rate change, if the asset and liability mix remains the same, the balance sheet will

be immunized against

further changes in interest rate.

(Choose the right words from the drop down lists)

h