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An Automobile Company, NISSAN, Has a Temporary Cash Surplus and Lends

Question 36

Essay

An automobile company, NISSAN, has a temporary cash surplus and lends its funds overnight through a repurchase agreement to a government securities dealer, earning $55,600 in interest income when the RP loan rate stood at 5.70%. What was the size of the loan that NISSAN granted to the securities dealer?

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The relevant formula is: $55,6...

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