Question: Question 7 2 pts Given the following table, you find that DGAP = -1.71 and the Weighted Average Earning Asset Yield equals 6.63%. Suppose interest

 Question 7 2 pts Given the following table, you find that

Question 7 2 pts Given the following table, you find that DGAP = -1.71 and the Weighted Average Earning Asset Yield equals 6.63%. Suppose interest rates increase from 6% to 7%, what is the expected change in the economic value of equity (EVE)? Market Value Duration Liabilities Market Value Duration Assets Rate Rate (Years) and Equity (Years) Cash Loans T-Bonds $200 Time Dep. $700 0% 0.00 4% 1.25 $525 $250 10% 1.50 CDs 6% 4.00 $275 5% 4.00 Equity $50 $1,000 S1,000 -16.04 -2.08 2.04 16.04

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