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Title: A DI has two assets: 50 percent in 1-year Treasury bonds and 50 percent in real estate loans. If the ... Post by: cloveb on Jan 12, 2017 A DI has two assets: 50 percent in 1-year Treasury bonds and 50 percent in real estate loans. If the DI must liquidate its T-bills today, it receives $98 per $100 of face value; if it can wait to liquidate them on maturity (in one year’s time), it will receive $100 per $100 of face value. If the DI has to liquidate its real estate loans today, it receives $90 per $100 of face value. For every $100 face value of real estate loans, the DI will receive $90 if it liquidates them at the end of one month, and $95 if liquidating at the end of one year. The one-year liquidity index value for this DI’s asset portfolio is
A. 0.940 B. 0.964 C. 0.979 D. 1.06 E. 1.10 Title: Re: A DI has two assets: 50 percent in 1-year Treasury bonds and 50 percent in real estate loans. If ... Post by: bolbol on Feb 26, 2017 Content hidden
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