Question: 45First Duration, a securities dealer, has a leverage-adjusted duration gap of 1.41 years, $60 million in assets, 7 percent equity to assets ratio, and market

45First Duration, a securities dealer, has a leverage-adjusted duration gap of 1.41 years, $60 million in assets, 7 percent equity to assets ratio, and market interest rates are 9 percent. What is the impact on the dealer's market value of equity if the change in all interest rates is an increase of 0.5 percent?

-$0.605.

+$0.605.

-$388,073.

+$776,147.

-$336,111.

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