What is the asset adjustment to a banks balance sheet if the bank sold a seven-year, 8 percent annual coupon $200,000 bond acquired at par, but now yielding 10 percent? The bond was not in the mark-to-market portfolio.

a.

$97,007 increase in assets.

b.

$200,000 increase in liabilities.

c.

$200,000 increase in assets.

d.

$200,000 reduction in assets.

e.

$97,007 reduction in assets.