An investor initially purchased securities at a price of $9,923,418, with an agreement to sell them back at a price of $10,000,000 at the end of a 90-day period. The repo rate is ____ percent.

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The repo rate is the annualized rate of interest charged on a repurchase agreement. It is calculated as follows:Repo rate = (Sale price - Purchase price) / Purchase price * (360 / Days)In this case, the sale price is $10,000,000, the purchase price is $9,923,418, and the days are 90.Therefore, the repo rate is:Repo rate = (10,000,000 - 9,923,418) / 9,923,418 * (360 / 90)= 0.0310= 3.10%

An Investor Initially Purchased Securities at a Price of $9,923,418