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A treasurer knows the weighted average duration of assets of the firms is 7.65, the weighted average duration of liability is 6.85, the size of

A treasurer knows the weighted average duration of assets of the firms is 7.65, the weighted average duration of liability is 6.85, the size of the assets is $8,900 million, and the size of the liability is $7,325 million. She wants to calculate how the value of the firm’s assets will change for a relative upward shift in the entire yield curve of 0.25 percent (ΔR=0.25%).  What will be the change in the market value of equity due to change in interest rate.

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