Homework Answers
Answer : 96.245%
Explanation
DI's Assets = $29 million in cash , $29 million in T-Bill and $36 million in Mortage Loans
Total Asset = 29+29+36 = $94 million
Expected Receipt = 99% of the fair market value of the T-Bills and 91% of the fair market value of the mortage loans
Therefore, 1- Month Liquidity Index = (29/94) * 1+ (29/94) * 0.99 + (36/94) * 0.91 = 0.9624 or 96.245%
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