A bank plans on borrowing $150 million through an RP transaction collateralized by T-bills.It plans on borrowing the money for 5 days and the current RP rate is 5.25 percent.What is the bank's total interest cost in dollars?
A) $7,875,000
B) $107,877
C) $21,875
D) $109,375
E) None of the options is correct
Correct Answer:
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