Impact on the bank market value of equity

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First Bank has a leverage-adjusted duration gap of -2.32 years, $50 million in assets, 10 percent equity to assets ratio, and market rates are 8 percent. What is the impact on the bank's market value of equity if the change in all interest rates is an increase of 0.5 percent [i.e., ΔR = 0.5 percent]

Reference no: EM132798257

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