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please shoe work D. A decrease in equity of $50,000. E. A decrease in lending of $50,000. 10. A financial institution currently holds a $1

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D. A decrease in equity of $50,000. E. A decrease in lending of $50,000. 10. A financial institution currently holds a $1 million bond investment priced at 95% with 2 years remaining to maturity. It is likely that if the bond yield continues to decline the price of the bon will reach $980,000 in one year's time. What is the bond's one-year liquidity index? A. 0.95. B. 0.97. C. 0.98. D. 1.00 E. None of the above D. A decrease in equity of $50,000. E. A decrease in lending of $50,000. 10. A financial institution currently holds a $1 million bond investment priced at 95% with 2 years remaining to maturity. It is likely that if the bond yield continues to decline the price of the bon will reach $980,000 in one year's time. What is the bond's one-year liquidity index? A. 0.95. B. 0.97. C. 0.98. D. 1.00 E. None of the above

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