Question: 7. Using the net worth formula if interest rates decline by 3%, what will be the expected change in the market value of net worth

7. Using the net worth formula if interest rates decline by

7. Using the net worth formula if interest rates decline by 3%, what will be the expected change in the market value of net worth for your firm and your competition (assume a 12% initial interest rate) 8. What would your firm need to do to eliminate the income gap using adjustments to rate-sensitive assets? What should your firm do to immunize the market value of net worth from interest-rate risk using duration

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