The Spot/week Repo Rate for the 4

question 158

Multiple Choice

The spot/week repo rate for the 4.25% OAT 2015 is quoted to you at 2.35-38%. You buy bonds with a market value of EUR 3,295,500.00 through a sell/buy-back. The Repurchase Price is:

• A) EUR 3,297,004.19
• B) EUR 3,297,005.86
• C) EUR 3,297,025.09
• D) EUR 3,296,985.23

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Definitions:

Issuing Bonds

The process of a borrower offering bonds to investors as a form of debt securities to raise capital.

Discount

A reduction in the price of goods or services offered by a seller, or the amount by which a bond is sold below its par value.

Validity

The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.