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Please use the duration formula when solving for this problem. Please solve for the changes...

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Accounting

Please use the duration formula when solving for this problem. Please solve for the changes in the value of the debt, bonds, and assets.

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Immunization Strategies Balance Sheet Liabilities Assets 10,000 Yield = 10% Cost of Capital Debt 5,000 Yield=6%; DB = 5 Equity 5,000 Da = 9 What is the impact on shareholders' equity of the general level of interest rate changes by 1%? =- From the Duration formula: D = - (AV/V)/(Ar/1+r) AV = -DA (Ar/1+r)V

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