Given the following table, you find that DGAP 0 29 Suppose interest rates decrease from 8 to 6 , what is the expected change in the economic value of equity (EVE) Liabilities Market Rate(Years) Market Duration (Years) Duration Assets Value Rate an Value Equity ime Cash Loans T Bonds$17 $150 0 10 5 $500 $400 $100 $1,000 0 00 4 1 25 Deposits $675 1 50 Ds 6 4 00 4 00 Equity $1,000

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Question: Given the following table, you find that DGAP = -0.29. Suppose interest rates decrease from 8% to 6%, what is the expected change in the

Given the following table, you find that DGAP = -0.29. Suppose interest rates decrease from 8% to 6%, what is the expected change in the economic value of equity (EVE)?

Given the following table, you find that DGAP = -0.29. Suppose interest

Liabilities Market Rate(Years) Market Duration (Years) Duration Assets Value Rate an Value Equity ime Cash Loans T-Bonds$17 $150 0% 10% 5% $500| $400 $100 $1,000 0.00 4% 1.25 Deposits $675 1.50 Ds 6% 4.00 4.00 Equity $1,000

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