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Question 2 (1 point) For the following bank, if market interest rates fall by 1%, then duration analysis predicts that the value of equity, now

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Question 2 (1 point) For the following bank, if market interest rates fall by 1%, then duration analysis predicts that the value of equity, now 10, will change to approximately Assets Value Modified Liabilities Value Modified Duration Duration FRB reserves 30 0 Interest Checking 40 0 Loans 70 4 50 1 Certificates of Deposit 12.3 O 6.6 12.5 13.4 11.2 Endreserves SU C IIILEI ESL CIELKING C Loans 70 4 50 1 Certificates of Deposit 12.3 6.6 12.5 13.4 11.2 8.8 7.7 7.5 Question 2/1 natinta

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