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7. Consider a T-note currently trading at a price of $9,800. • You are entering into a 14-day repo to repo out the above
Posted: Fri Mar 04, 2022 9:41 am
by answerhappygod
- 7 Consider A T Note Currently Trading At A Price Of 9 800 You Are Entering Into A 14 Day Repo To Repo Out The Above 1 (34.83 KiB) Viewed 36 times
7. Consider a T-note currently trading at a price of $9,800. • You are entering into a 14-day repo to repo out the above T-note. Assume a haircut of 3% and the 14-day repo rate is 4% p.a. How much will you pay or receive at the end of the 14-day period? • Describe a scenario where the above 14-day repo rate can be significantly negative. (3 pts)