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Multiple Choices Table 24.1 First National Bank Assets Liabilities $20 million $50 million $80 million $40 million Rate-sensitive Fixed-rate 1. Refer to Table 24.1. Assuming
Multiple Choices Table 24.1 First National Bank Assets Liabilities $20 million $50 million $80 million $40 million Rate-sensitive Fixed-rate 1. Refer to Table 24.1. Assuming that the average duration of its assets is five years, while the average duration of its liabilities is three years, a rise in interest rates from 5 percent to 10 percent will cause the net worth of First National to by of the total original asset value. (a) increase; 11 percent (b) decline; 11 percent (c) increase; 10 percent (d) decline; 5 percent
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