Please use the following additional information for Question…
Please use the following additional information for Questions 42-43: First Duration, a securities dealer, has a leverage-adjusted duration gap of 1.21 years, $60 million in assets, 7 percent equity to assets ratio, and market rates are 8 percent. Question: 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?