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For a bank, all assets and liabilities are currently priced at parand pay interest annually. Bank Asset has a 10 year 12 percent loan which

For a bank, all assets and liabilities are currently priced at parand pay interest annually. Bank Asset has a 10 year 12 percent loan which is $40million.

What is market value of the ten-year loan if all market interest rates increase by 2 percent?

A. $40.000 million

B. $44.916 million

C. $37.830 million

D. $42.356 million

E. $35.827 million

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