这是一份manchester曼切斯特大学ECON30852T作业代写的成功案例

With a total asset value of $\$ 100$ million, the market value of assets falls by $\$ 2.5 \mathrm{mil}$ lion $(\$ 100$ million $\times 0.025=\$ 2.5$ million $)$ :
$$
\% \Delta P=-D U R \times \frac{\Delta i}{1+i}
$$
where
$$
\begin{aligned}
\mathrm{DUR} &=\text { duration } &=2.70 \
\Delta \mathrm{i} &=\text { change in interest rate }=0.11-0.10 &=0.01 \
i &=\text { interest rate } &=0.10
\end{aligned}
$$
Thus:
$$
\% \Delta P \approx-2.70 \times \frac{0.01}{1+0.10}=-0.025=-2.5 \%
$$

ECON30852T COURSE NOTES ：

$$
D U R_{\text {gap }}=D U R_{a}-\left(\frac{L}{A} \times D U R_{l}\right)=1.16-\left(\frac{90}{100} \times 2.77\right)=-1.33 \text { years }
$$
Since the Friendly Finance Company has a negative duration gap, the manager realizes that a rise in interest rates by 1 percentage point from $10 \%$ to $11 \%$ will increase the market value of net worth of the firm. The manager checks this by calculating the change in the market value of net worth as a percentage of assets:
$$
\Delta N W=-D U R_{g a p} \times \frac{\Delta i}{1+i}=-(-1.33) \times \frac{0.01}{1+0.10}=0.012=1.2 \%
$$