Can you write it down on paper instead of doing it in excel? Suppose that...
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Accounting
Can you write it down on paper instead of doing it in excel?
Suppose that an investor purchases $3 million market value of a bond. The investor decides to borrow the funds via a repurchase agreement and the dealer is willing to lend 97% of the market value of the bond. The overnight repo rate is 7%. Assume that the investor borrows the funds for 1 day. What is the dollar interest cost of this borrowing arrangement? Explain the process.
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You can see the logs in the Dashboard.