Multiple Choice Questions 3. If the loan portfolio of a bank consists of a five-year, 10 percent annual coupon loan selling at par, what is the market, or economic, value of capital if interest rates increase by 1 percent? Securities (at par) Loans (at par) $250 $760 Deposits Capital $975 $35 A. $35 million. B. -$155 million. C. $7 million. D. -$7 million. E. $0