23. An economic downturn lead to your AAA bonds to be downgraded to A and now sell at i=11.11%. If you need $10 million of mark to market bonds, how many do you need (round to the nearest 500)? Compared to the above question, how much more costly/cheaper is your collateral?

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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23. An economic downturn lead to your
AAA bonds to be downgraded to A and
now sell at i=11.11%. If you need $10
million of mark to market bonds, how many
do you need (round to the nearest 500)?
Compared to the above question, how
much more costly/cheaper is your
collateral?
Transcribed Image Text:23. An economic downturn lead to your AAA bonds to be downgraded to A and now sell at i=11.11%. If you need $10 million of mark to market bonds, how many do you need (round to the nearest 500)? Compared to the above question, how much more costly/cheaper is your collateral?
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