Lucky Bay bank holds a 20-year, fixed-rate, 11% annual coupon $100,000 par value bond. If

interest rates decreases by 25 basis points, what is the impact on the bank's book value

capital from a regulatory perspective?

Select one:

A. An increase of $2,023

B. An increase of $250

C. A decrease of $250

D. A decrease of $1,959

E. No impact on capital since the book value is unchanged.