Question
Use the following balance sheet information to answer this question. Duration Amount T-bills 0.5 $ 500 T-notes 0.8 $ 50 T-bonds 4.5 $ 200 Loans
Use the following balance sheet information to answer this question.
| Duration | Amount | |
| T-bills | 0.5 | $ 500 |
| T-notes | 0.8 | $ 50 |
| T-bonds | 4.5 | $ 200 |
| Loans | 7 | $3,000 |
| Deposits | 1 | $2,750 |
| Federal funds | 0.01 | $250 |
| Equity |
| $750 |
If the entire yield curve shifted upward 0.15 percent (i.e., R/(1 + R) = 0.0015), what is the change in the FIs market value of equity?
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Banking Secrecy And Global Finance
Authors: Donato Masciandaro, Olga Balakina
1st Edition
1137400099, 978-1137400093
