Question
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 |
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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Last Rights Liquidating A Company
Authors: Ben Branch, Hugh Ra, Robin Russell
1st Edition
0195306988, 978-0195306989
