9-74 What is the impact on the dealer's market value of equity per $100 of assets if the relative change in all interest rates is an increase of 0.5 percent [i.e.,$\Delta$R/(1+R)= 0.5 percent]

Question

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The impact on the dealer's market value of equity per $100 of assets is calculated by considering the change in interest rates and its effect on the value of assets and liabilities. A 0.5% increase in interest rates typically decreases the market value of fixed-income assets, leading to a decrease in equity value. The negative sign indicates a loss in equity value per $100 of assets.

9-74 What Is the Impact on the Dealer's Market Value Δ\DeltaΔ

9-74 What Is the Impact on the Dealer's Market Value $\Delta$