A DI has the following assets in its portfolio: $21 million in cash reserves with the Fed, $21 million in T-bills, and $

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answerhappygod
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A DI has the following assets in its portfolio: $21 million in cash reserves with the Fed, $21 million in T-bills, and $

Post by answerhappygod »

A DI has the following assets in its portfolio: $21 million in
cash reserves with the Fed, $21 million in T-bills, and $51 million
in mortgage loans. If it needs to dispose of its assets at short
notice, it will receive only 98 percent of the fair market value of
the T-bills and 91 percent of the fair market value of its mortgage
loans. If the DI waits one month to liquidate these assets, it
would receive the full fair market value for each security.
Calculate the one-month liquidity index using the previous
information. (Do not round intermediate calculations. Round your
answer to 3 decimal places. (e.g., 32.161))
One-month liquidity index =
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