There is a drop of 55MM in the investment portfolio. 11 mo mmen ecides to use the Purchase Liquidity Manarement. (PLM) to make up for the investment loss, then, in the adjusted balance sheet ( 3 marks) a.) Deposits will go down by $5 b.) Other liabilities will go up by $5 c.) Cash will go down by $5 d.) Other assets will go down by 55 e.) Borrowed funds will go up by $5 Q.26 Which of the following statements is false? ( 3 marks) a.) Direct finance does not require a financial intermediary b.) Direct finance works to the advantage of both the lenders and borrowers c.) Indirect finance involving a FI offers a meeting place for both lenders and borrowers d.) Indirect finance involving a FI can help its customers lower their transaction costs e.) Indirect finance involving a FI can offer expert advices to its customers Q.27 Given the following simplified balance sheet for a FI: The financing gap of this FI is: a.) $6MM b.)e.)$7MM$9MM c.) \$8 MM d.) \$5 MM e.) S9MM Q.28 Company ABC issued a coupon bond 2 years ago with a maturity of 10 years. It cai 6% coupon, a face value of $1,000 and a yield of 8%. You purchased this bond when issued at a discount of 7%. If you sell this bond now, your return on this bond is: (4 marks) a.) 3.7% b.) (3.7)% c.) (4.2)% d.) 4.2% e.) 0.5% For Q.29 to Q.30, please refer to the following problem: ABC bank has issued a one-year loan commitment of S 20 MM for an upfront fee of 0.5%. Fees on any unused portion of the loan is 0.25%. The bank has a cost of fund of 7% and will charged an interest rate of 9%. At the end of 6months, there would be a drawdown of 50% of the committed amount followed by another 30% three months later. Q.29. The total cost of the loan (interest plus fees combined) over the committed duration b.)e.)$$$726,730$692,000 c.) $738,420 Q.30. The annual return of this loan commitment over this one-year period is: (4 marks) a.) d.) 10.5% b.)e.)9.5%11.2% c.) 10.4%