Answer Happy

Consider a financial institution that has the following balance
sheet. The Asset side is $9 million loan with a modified duration
of 2.4 periods and the liability side is $8 million bond with a
modified duration of 8 periods. The modified duration of the net
worth is ___. When interest rate goes up, the net worth of the
financial institution ____.
A.
negative; goes up
B.
positive; goes up
C.
negative; goes down
D.
positive; goes down