US\$100 million in intesnational bonds based on current market values. Based on previous stress testing ined the case of a market event leading to a liquidity crisis, the Fund can sell and receive 94% of market value of assets if it needed to liquidate in three days but 98.5% of market value if sold in five days. Two institutional investors, a pension fund and a sovereign wealth fund, own 6% and 8% of the share capital respectively. Required: a) Fears of higher inflation and interest rates have caused market volatility and the two institutional investors now wish to exit their holdings in the Evergreen Balanced Fund. What will be the proceeds received by both investors if the Fund liquidates its assets in three days and five days respectively? (8 marks) b) What is a bank run and how does it differ from this type of liquidation? What measures can bank regulators implement to minimize the effects of a bank run? List three methods regulators could deploy. (7 marks) c) For the above Fund if it had issued 30.475 million units what would be the net asset value? (5 marks) US\$100 million in intesnational bonds based on current market values. Based on previous stress testing ined the case of a market event leading to a liquidity crisis, the Fund can sell and receive 94% of market value of assets if it needed to liquidate in three days but 98.5% of market value if sold in five days. Two institutional investors, a pension fund and a sovereign wealth fund, own 6% and 8% of the share capital respectively. Required: a) Fears of higher inflation and interest rates have caused market volatility and the two institutional investors now wish to exit their holdings in the Evergreen Balanced Fund. What will be the proceeds received by both investors if the Fund liquidates its assets in three days and five days respectively? (8 marks) b) What is a bank run and how does it differ from this type of liquidation? What measures can bank regulators implement to minimize the effects of a bank run? List three methods regulators could deploy. (7 marks) c) For the above Fund if it had issued 30.475 million units what would be the net asset value