• A financial institution currently holds a $1 million bond investment priced at 95% with 2 years remaining to maturity. It is likely that if the bond yield continues to decline the price of the bond will reach $980,000 in one year's time. What is the bond's one-year liquidity index?

Answer rating: 100% (QA)

The bonds liquidity index can be calculated by dividing the exp... View the full answer