The Two-Week Repo Rate for the 5

question 189

Multiple Choice

The two-week repo rate for the 5.25% bund 2007 is quoted to you at 3.33-38%. You agree to reverse in bonds worth EUR 266,125,000 with no initial margin. You would earn repo interest of:

• A) EUR 349,806
• B) EUR 344,632
• C) EUR 319,315
• D) EUR 324,110

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