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Consider the following extracts from the balance sheet of Radobank (values in millions and duration in years): Value Duration Loans short term 1700 0.9 Loans

Consider the following extracts from the balance sheet of Radobank (values in millions and duration in years):

Value

Duration

Loans short term

1700

0.9

Loans long term

3000

3.9

Mortgages

4400

8.4

T bonds

1200

3.2

Deposits

8500

1.7

b What is the change in the market value of equity of Radobank, as a percentage of assets, if interest rates increase from 4.5% to 5.0%?

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