A bank plans on borrowing $450 million for 20 days through a RP transaction collateralized by T-Bills.The current RP rate is 6.25 percent.What is the bank's total interest cost in dollars?
A) $28,125,000
B) $78,125
C) $1,406,250
D) $1,562,500
E) None of the options is correct
Correct Answer:
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