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Xerox Corporation has acquired Acme Corporation. To help finance the takeover, Conglomerate will liquidate the overfunded portion of Acme's pension fund. The face values and
Xerox Corporation has acquired Acme Corporation. To help finance the takeover, Conglomerate will liquidate the overfunded portion of Acme's pension fund. The face values and current and one-year future liquidation values of the assets that will be liquidated are given below: Liquidation Values T=0 $9,900 T-1 $10,800 $4,600 $14,000 Asset Face Value IBM stock GE bonds Treasury $10,000 $5,000$4,200 $15,000 $13,500 1. Calculate the 1-year liquidity index for these securities
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