Suppose a bank has DurA $=1\mathrm{.}0$ years and DurL $=0\mathrm{.}60$ years. The bank has total equity of $$110$ million and total assets of $$920$ million. Interest rates are at $6\mathrm{.}00\%.$ If interest rates increase $50$ basis points what is the predicted dollar change in equity value $($to the nearest dollar$)?$

Question $7$Answer

a$.$

$-$$$3,023,474$

b$.$

$-$$$1,735,849$

c$.$

$$2,128,037$

d$.$

$-$$$2,047,170$

e$.$

$$5,501,147$