If the rate on the repo is 6.5% and the rate on the reverse repo is 6.55%, the dealer firm is borrowing at 6.5% and lending at 6.55%, locking in a spread of 0.55% (fifty-five basis points).
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Q22: Most central governments issue fixed-rate coupon bonds
Q23: _, there is a regular calendar of
Q24: The Treasury does not issue zero-coupon notes
Q25: Which of the below statements is FALSE?
A)
Q26: _, governments announce auctions when prevailing market
Q28: The purpose of _ is to facilitate
Q29: When the Fed buys collateral for its
Q30: The repo rate will be slightly below
Q31: _ pay a fixed coupon (usually 4%)
Q32: _, additional bonds of a previously outstanding
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