filings.toolsItem 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We manage exposure to market interest rates by diversifying investments across different fixed-income market sectors and debt across maturities, as well as by matching a portion of our floating-rate assets and liabilities, either directly or through the use of interest rate swap contracts. Unrealized gains and losses on investments in available-for-sale debt securities are reported in comprehensive income.
The following table summarizes the impact of hypothetical changes in market interest rates across the entire yield curve by 1% point or 2% points as of September 30, 2022 on our investment income and interest expense per annum, and the fair value of our investments and debt (in millions, except percentages):
| September 30, 2022 | ||||||||||||||||||||||||||
| Increase (Decrease) in Market Interest Rate | Investment Income Per Annum | Interest Expense Per Annum | Fair Value of Financial Assets | Fair Value of Financial Liabilities | ||||||||||||||||||||||
| 2 % | $ | 845 | $ | 186 | $ | (3,027) | $ | (6,014) | ||||||||||||||||||
| 1 | 422 | 93 | (1,563) | (3,261) | ||||||||||||||||||||||
| (1) | (422) | (93) | 1,656 | 3,894 | ||||||||||||||||||||||
| (2) | (845) | (186) | 3,391 | 8,586 |
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