Use the following information to solve for the effective borrowing cost for a repurchase agreement...
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Accounting
Use the following information to solve for the effective borrowing cost for a repurchase agreement with a two-day term: Face value of Treasury-bills = $1,000,000 Current market value of Treasury-bills = $999,500 Value exchanged at initiation of repurchase agreement = $998,000 Repurchase amount in two days = $998,200
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