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The Price of a 6-Month T-Bill Is 96

Question 5

Multiple Choice

The price of a 6-month T-bill is 96.73.You wish to enter into a repurchase agreement that provides for your purchase of a $100,000 bond in 10 days at a price of 97.02.What is the implied 10 day repo rate in this transaction?


A) 0.10%
B) 0.20%
C) 0.30%
D) 0.40%

Correct Answer:

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