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When the average duration of its liabilities is four years and the average duration of its assets is three years, then a 5 percentage point

When the average duration of its liabilities is four years and the average duration of its assets is three years, then a 5 percentage point increase in interest rates will cause the net worth of a bank to ________ by ________ of the total original asset value.
A) decline; 5 percent
D) increase; 10 percent
B) decline; 10 percent
C) increase; 5 percent

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