Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from...
Suppose a bank enters a repurchase agreement in which it agrees
to buy Treasury securities from a correspondent bank at a price of
$24,995,000, with the promise to buy them back at a price of
$25,000,000.
a. Calculate the yield on the repo if it has a
7-day maturity.
b. Calculate the yield on the repo if it has a
21-day maturity.
Homework Answers
a. Yield on the repo = [($25,000,000 − $24,995,000) / $24,995,000] × (360 / 7) = 0.0103 or 1.03%
b. Yield on the repo = [($25,000,000 − $24,995,000) / $24,995,000] × (360 / 21) = 0.0034 or 0.34%
https://www.infowars.com/
Add Answer to:
Suppose a bank enters a repurchase agreement in which it agrees
to buy Treasury securities from...
Suppose a bank enters a repurchase agreement in which it agrees to buy a treasury securities...
Suppose a bank enters a repurchase agreement in which it
agrees to buy a treasury securities from a correspondent bank at a
price of $29,950,000, with the promise to buy them back at a price
of $30,000,000.
Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $29,950,000, with the promise to buy them back at a price of $30,000,000 a. Calculate the yield on the repo...
Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from...
Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $22,950,000, with the promise to buy them back at a price of $23,000,000. a. Calculate the yield on the repo if it has a 5-day maturity. b. Calculate the yield on the repo if it has a 16-day maturity. (For all requirements, use 360 days in a year. Do not round intermediate calculations. Round your answers to...
Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from...
Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $23,950,000, with the promise to buy them back at a price of $24,000,000. a. Calculate the yield on the repo if it has a 6-day maturity. b. Calculate the yield on the repo if it has a 20-day maturity. (For all requirements, use 360 days in a year. Do not round intermediate calculations. Round your answers to...
Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from...
Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $410 million, with the promise to sell them back at a price of $410.1 million in five days. Calculate the quoted and bond equivalent yield. What is the actual yield if you consider reinvestment and compounding?
Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from...
Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $410 million, with the promise to sell them back at a price of $410.1 million in five days. Calculate the quoted and bond equivalent yield. What is the actual yield if you consider reinvestment and compounding?
A bank enters into a repurchase agreement in which it agrees to sell Treasury securities to...
A bank enters into a repurchase agreement in which it agrees to sell Treasury securities to another bank at a price of $24,973,557, with a promise to buy them back at a price of $25,000,000 in 8 days. Repo yields are expressed as “single payment yields.” What is the single payment yield on this repo? Answer in percent to three decimal places. Omit the percent sign.
Question 3 1 pts Suppose a bank enters a repurchase agreement in which it agrees to...
Question 3 1 pts Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $24,995,000, with the promise to buy them back at a price of $25,000,000 in 14 days. What is the bond equivalent yield? 7.30% None of these is correct 5.22% 0.73% 0.52%
. If the overnight fed funds rate is quoted as 5.25%. What is the EAR? ) 5.25% B) 5.3229% C) 5.3899% D) 5.4667% 8....
. If the overnight fed funds rate is quoted as 5.25%. What is the EAR? ) 5.25% B) 5.3229% C) 5.3899% D) 5.4667% 8. If a $10,000 par T-bill has a 3.75 percent discount quote and a 90-day maturity, what is the price of the T-bill to the nearest dollar? A) $9,625 B) $9,906 C) $9,908 D) $9,627 E) none of the options 79. Suppose a bank enters a repurchase agreement in which it agrees to buy T-bonds from a...
please help with question 1-4 D Question 1 1 pts You would like to purchase a...
please help with question 1-4
D Question 1 1 pts You would like to purchase a T-bill that has a $10,000 face value and is 68 days from maturity. The current price of the T-bill is $9,875. Calculate the discount yield on this T-bill. 6.804% None of these is correct 7.027% 6.620% 1326% Question 2 1 pts A bank has issued a six-month, $3 million negotiable CD with a 4.25 percent quoted annual interest rate. If you buy the CD,...
4. Repurchase Agreement Stanford Corporation arranged a repurchase agreement in which it purchased securities for $4.9...
4. Repurchase Agreement Stanford Corporation arranged a repurchase agreement in which it purchased securities for $4.9 million and will sell the securities back for $5 million in 40 days. What is the yield (or repo rate) to Stanford Corporation?
Suppose a bank enters a repurchase agreement in which it
agrees to buy a treasury securities from a correspondent bank at a
price of $29,950,000, with the promise to buy them back at a price
of $30,000,000.
Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $29,950,000, with the promise to buy them back at a price of $30,000,000 a. Calculate the yield on the repo...
Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $22,950,000, with the promise to buy them back at a price of $23,000,000. a. Calculate the yield on the repo if it has a 5-day maturity. b. Calculate the yield on the repo if it has a 16-day maturity. (For all requirements, use 360 days in a year. Do not round intermediate calculations. Round your answers to...
Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $23,950,000, with the promise to buy them back at a price of $24,000,000. a. Calculate the yield on the repo if it has a 6-day maturity. b. Calculate the yield on the repo if it has a 20-day maturity. (For all requirements, use 360 days in a year. Do not round intermediate calculations. Round your answers to...
A bank enters into a repurchase agreement in which it agrees to sell Treasury securities to another bank at a price of $24,973,557, with a promise to buy them back at a price of $25,000,000 in 8 days. Repo yields are expressed as “single payment yields.” What is the single payment yield on this repo? Answer in percent to three decimal places. Omit the percent sign.
Question 3 1 pts Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $24,995,000, with the promise to buy them back at a price of $25,000,000 in 14 days. What is the bond equivalent yield? 7.30% None of these is correct 5.22% 0.73% 0.52%
. If the overnight fed funds rate is quoted as 5.25%. What is the EAR? ) 5.25% B) 5.3229% C) 5.3899% D) 5.4667% 8. If a $10,000 par T-bill has a 3.75 percent discount quote and a 90-day maturity, what is the price of the T-bill to the nearest dollar? A) $9,625 B) $9,906 C) $9,908 D) $9,627 E) none of the options 79. Suppose a bank enters a repurchase agreement in which it agrees to buy T-bonds from a...
please help with question 1-4
D Question 1 1 pts You would like to purchase a T-bill that has a $10,000 face value and is 68 days from maturity. The current price of the T-bill is $9,875. Calculate the discount yield on this T-bill. 6.804% None of these is correct 7.027% 6.620% 1326% Question 2 1 pts A bank has issued a six-month, $3 million negotiable CD with a 4.25 percent quoted annual interest rate. If you buy the CD,...
4. Repurchase Agreement Stanford Corporation arranged a repurchase agreement in which it purchased securities for $4.9 million and will sell the securities back for $5 million in 40 days. What is the yield (or repo rate) to Stanford Corporation?
Most questions answered within 3 hours.
-
A single NEC SX-9 vector processor unit (VPU) has a peak
arithmetic
performance of 102.4 GFs/s....
asked 13 minutes ago -
. Determine the hourly multiplication factors
such that the total daily water consumption will equal 15,000...
asked 13 minutes ago -
A budgeting Web site reported that 35% of U.S. households have
withdrawn money from a 401(k)...
asked 12 minutes ago -
In this assignment, you will write a minimum two-page paper that
explains the treatment of internal...
asked 17 minutes ago -
Direct marketing is also referred to as Question 50 options: 1)
one-to-one marketing. 2) business-customer marketing....
asked 20 minutes ago -
INK Ltd is grocery retailer with 103 shops around South
Australia and Tasmania. The company has...
asked 25 minutes ago -
HOW BEER IS MADE
The beer making process is an art. It takes time, patience and...
asked 26 minutes ago -
What two methods could be used to purify the dimethyl
fumarate?
Based on the 12 Principles...
asked 35 minutes ago -
Reflect upon the readings and videos as well as our Media Monday
discussion. Integrating concepts from...
asked 40 minutes ago -
1. A cylindrical capacitor with A = 0.01, B = 0.1 and a length
of 5...
asked 47 minutes ago -
Explain how taking an SGLT-2 inhibitor, along with taking
insulin leads to ketoacidosis in people who...
asked 56 minutes ago -
Show the truth table of the
gates needed to control the PISO internal FF, has a...
asked 59 minutes ago