Suppose the Hunter Bank of Pullman has $1.1 billion in assets with a modified duration of 6 and

$1.0 billion in liabilities with a modified duration of 0.44. If interest rates fall by 1% approximately

what is the impact on Hunter's equity value?

A. Increases by 6.4%

B. Increases by 5.6%

C. Falls by 6.4%

D. Falls by 5.6%