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An institution with assets of $1 million has duration of assets of 5 years, duration of liabilities of 3.5 years, and its leverage ratio is

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An institution with assets of $1 million has duration of assets of 5 years, duration of liabilities of 3.5 years, and its leverage ratio is 0.9. Current interest rates are 1.5%. What is the impact on the financial institution's market value of equity (AE) of a 1% increase in interest rates? (Show your work) An institution with assets of $1 million has duration of assets of 5 years, duration of liabilities of 3.5 years, and its leverage ratio is 0.9. Current interest rates are 1.5%. What is the impact on the financial institution's market value of equity (AE) of a 1% increase in interest rates? (Show your work)

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