Suppose bond market liquidity condition has substantially improved after introducing high frequency traders in recent years. The trading costs of Bond B is significantly reduced. Suppose initially LTCM could make 0.4 billion dollars from using a bond trading strategy with a total equity investment of 1 billion dollars, ie, 40% return on equity, Now after the reduction of transaction costs, they can only make 10% return on equity from trading (ie. 0,1 billion dollars). In order to bring equity return back to 40%, what they should do? o Borrow another 2 billion dollars from brokers and use this additional money to trade on the same trading strategy Use 0.5 billion dollars in trading Bond A and 0.5 billion dollars in trading Bond B Borrow another 1 billion dollars from brokers and use this additional money to trade on the same trading strategy Borrow another 3 billion dollars from brokers and use this additional money to trade on the same trading strategy