A Bond Is Trading 50 Basis Points Special for 1

question 6

Multiple Choice

A bond is trading 50 basis points special for 1 week, while the 1-week GC repo rate is 3.25%. If you held GBP 10,500,000 of this bond, what would be the cost of borrowing against it in the repo market?

• A) GBP 7,551.37
• B) GBP 6,544.52
• C) GBP 5,537.67
• D) GBP 1,006.85

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A behavior that goes against moral principles and professional standards.

Future Favors

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