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.
-
Create a 32-run crossed array design with six control factors
and two noise factors such that...
asked 10 minutes ago -
A 500g sample of sand from source A has the following amounts
retained on each sieve....
asked 11 minutes ago -
In
your own words, please explain the essay by John Keynes wrote "The
End of Laissez...
asked 10 minutes ago -
How are the matrix and pixels related? Why are smaller
pixels better for diagnostic quality?
asked 13 minutes ago -
2. An AC generator has 80 rectangular loops on
its armature. Each loop is 11 cm...
asked 15 minutes ago -
Please help me with this question. Consider Aldi’s current and
potential geographic markets (see Exhibit 4...
asked 17 minutes ago -
What are the main components of the fermentation process and
give an explanation of each? Include...
asked 42 minutes ago -
Explain which types of cells in the body (belonging to which
organs, etc.) are sensitive to...
asked 46 minutes ago -
A single cable supports an 703-kg elevator car. What is the
tension in the cable when...
asked 48 minutes ago -
among the three different ways to link CSS specifications to an
HTML document (inline CSS, document...
asked 1 hour ago -
(1) Write the net ionic equation for the reaction that occurs
when equal volumes of 0.191...
asked 1 hour ago -
On the night of April 18, 1775, a signal was to be sent from the
Old...
asked 1 hour ago