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4. A bank is trying to measure its ability to quickly sell some securities if it runs into a liquidity problem. Given the following information,

4. A bank is trying to measure its ability to quickly sell some securities if it runs into a liquidity problem. Given the following information, calculate the immediate, one-week, two-week and one-month liquidity index for the banks securities.

Dollar

Percent of face value received if sold

Asset

Amount

Immediately

One week

Two weeks

One month

Cash

25

100

100

100

100

T-bills

50

97.5

99

100

100

Corporate bonds

65

95

97.5

98

99

Municipal bonds

20

90

92.5

95

97

Mortgages

90

80

88

93

97

Total

250

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