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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $38,950,000, with the promise to buy them back at a price of $39,000,000.
| a. |
Calculate the yield on the repo if it has a 6-day maturity. (Use 360 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
| Â Â Yield on the repo | % |
| b. |
Calculate the yield on the repo if it has a 18-day maturity. (Use 360 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
| Â Â Yield on the repo | % |
Â
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