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A Repurchase Agreement Calls for an Investor to Buy Securities

Question 15

Multiple Choice

A repurchase agreement calls for an investor to buy securities for $4,925,000 and sell them back in 60 days for $5,000,000. What is the yield?


A) 9.43 percent
B) 9.28 percent
C) 9.14 percent
D) 9.00 percent

Correct Answer:

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