A bond is trading 50 basis points special for 1 week, while the 1-week GC repo rate is 3.25%. If you held GBP 10,500,000 of this bond, what would be the cost of borrowing against it in the repo market?
A) GBP 7,551.37
B) GBP 6,544.52
C) GBP 5,537.67
D) GBP 1,006.85

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The Answer of A bond is trading 50 basis points special for 1 week, while the 1-week GC repo rate is 3.25%. If you held GBP 10,500,000 of this bond, what would be the cost of borrowing against it in the repo market?
A) GBP 7,551.37
B) GBP 6,544.52
C) GBP 5,537.67
D) GBP 1,006.85

A Bond Is Trading 50 Basis Points Special for 1