Question: First Duration, a securities dealer, has a leverage-adjusted duration gap of 1.8 years, $53 million in assets, 7 percent equity to assets ratio, and market

First Duration, a securities dealer, has a leverage-adjusted duration gap of

First Duration, a securities dealer, has a leverage-adjusted duration gap of 1.8 years, $53 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 if the change in all interest rates is an increase of 0.5 percent? [i.e., AR = 0.5 percent]

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