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

question 517

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 EUR 25,000,000.00 nominal of the 5.5% OAT April 2015, which is worth EUR 28,137,500.00. 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

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Definitions:

Excitation Gradient

A concept in psycho-physiology referring to the increase in neuronal activity leading up to the initiation of a response.

Acquisition Curve

A graphical representation that shows the rate of learning over time, typically illustrating a rapid increase in knowledge or skill followed by a plateau.

Generalization Gradient

A concept in psychology and behavioral science describing the decrease in response strength with increasing difference from the original conditioned stimulus.

Discrimination Learning

The process of learning to respond differently to various stimuli, distinguishing between those that are rewarded and those that are not.