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The Tom/next GC Repo Rate for German Government Bonds Is

Question 1

Multiple Choice

The tom/next GC repo rate for German government bonds is quoted to you at 1.75-80%. As collateral, you sell EUR 10,000,000.00 nominal of the 5.25% Bund July 2012, which is worth EUR 11,260,000.00, with no initial margin. The Repurchase Price is:


A) EUR 10,000,500.00
B) EUR 10,000,486.11
C) EUR 11,260,563.00
D) EUR 11,260,547.36

Correct Answer:

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