Which of the following will tend to have the higher yield?
A) Treasury bill
B) Repo against Treasury bill collateral
C) They have the same yield
D) Cannot say

Name: Which of the following will tend to have the higher yield? A) Treasury bill B) Repo against Treasury bill collateral C) They have the same yield D) Cannot say
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Question

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A repo against Treasury bill collateral typically involves a higher yield than the underlying Treasury bill due to the additional liquidity risk taken on by the borrower.

Which of the Following Will Tend to Have the Higher