Question: First Duration, a securities dealer, has a leverage-adjusted duration gap of 1.22 years, $70 million in assets, 7 percent equity to assets ratio, and market

First Duration, a securities dealer, has a leverage-adjusted duration gap of 1.22 years, $70 million in assets, 7 percent equity to assets ratio, and market rates are 8 percent. What is the impact on the dealer's market value of equity per $100 of assets if the change in all interest rates is an increase of 0.6 percent [i.e., Change R= 0.6 percent] +$474,444 $0.605 $474,444 +$0.605. $363,000

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