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Suppose your company is in such a situation, where it has two assets, which are $1 billion of cash and $4 billion of collateralized debt

  1. Suppose your company is in such a situation, where it has two assets, which are $1 billion of cash and $4 billion of collateralized debt obligations (CDOs). In the liabilities side, it also has a $3 billion of loan which is due very soon. Assume the market value of your $4 billion of CDOs is only $1 billion currently. Please discuss what you should do in this situation.

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