The One-Month (31-Day) GC Repo Rate for French Government Bonds

question 164

Multiple Choice

The one-month (31-day) GC repo rate for French government bonds is quoted to you at 3.75-80%. As collateral, you are offered EUR25 million nominal of the 5.5% OAT April 2006, which is worth EUR 28,137,500. If you impose an initial margin of 1%, the Repurchase Price is:

• A) EUR 27,947,276.43
• B) EUR 27,946,077.08
• C) EUR 27,950,071.43
• D) EUR 27,948,871.97

---

Definitions:

Assets

Assets of economic worth owned or managed by a person, company, or nation, anticipated to bring future advantages.

Statistical Discrepancy

The difference between two sets of numbers or data points that are expected to be in agreement but are not, due to errors or variances.

Balance of Payments

A financial statement that summarizes a country's transactions with the rest of the world, including trade, investments, and monetary movements, over a specific time period.

Foreign Exchange Market

A global marketplace for trading national currencies against one another.