Fresh from your graduation from Ryerson and having just started your new job as departmental super- visor at the Royal Bank of White Horse (RBWH), your supervisor, Gordon Gekko, tells you that he is highly concerned about the bank being too leveraged and, consequently, exposed to a higher degree of interest rate risk than would be prudent. He wants your department to do an overall assement of the bank's current level of interest rate risk, and tells you that your department can use the duration measure in making the necessary calculations. You already know the current constant monthly rate of interest is 6.00%, the current value of of the mortgage assets held by the bank is $2,400,000,000.00 while the value of its liabilities is $2,320,000,000.00. Your research assistant tells you that the latest calculation of the duration measure for the bank's assets is D = I, while the corresponding duration value for its liabilities is D = 1. Your supervisor wants you, as department head, to answer the single most important question regarding the bank's exposure, which is what is the minimum percentage increase in the constant monthly mterest rate of sir percent that would reduce the equity value of RBWH to zero, and consequentially insolvent?" 1.10% O 30% none of the above 2.00% O 50%