What is the change in the value of its assets

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TD Bank has the following assets and liabilities as of year-end. All assets and liabilities are currently priced at par and pay interest annually.

a. What is the change in the value of its assets if all interest rates decrease by 1 percent?

b. What is the change in the value of its liabilities if all interest rates decrease by 1 percent?

c. What is the effect on the value of the FI's equity if interest rates decrease by 1 percent?

Reference no: EM132540921

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