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Q 5 : Suppose you own bonds ( $ 3 0 0 0 ) , financed completely by cash ( $ 3 0 0 0

Q5: Suppose you own bonds ($3000), financed completely by cash ($3000). What is the leverage of your balance sheet? And, What will happen to the net worth if the value of asset goes down by 5%?
What if you finance bonds ($3000) with cash ($1000) and debt ($2000)?

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