What Is the Repurchase Price of a Classic Repo

question 372

Multiple Choice

What is the Repurchase Price of a classic repo?

• A) The market value of bond collateral at the end of the repo at the clean price of the bond
• B) The market value of bond collateral at the end of the repo at the dirty price of the bond
• C) The amount of cash actually paid for collateral at the start of the repo
• D) The amount of cash actually paid for collateral at the start of the repo plus repo interest

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Definitions:

Tunica Media

The middle layer of the wall of a blood vessel or lymph vessel which is made up of smooth muscle cells and elastic tissue.

Smooth Muscle

Involuntary, non-striated muscle that is found in the walls of internal organs such as the stomach, intestines, and blood vessels.

Elastic Tissue

Connective tissue made of elastin fibers that allow tissues in the body to resume their shape after stretching or contracting.

Loose Connective Tissue

Loose connective tissue is a type of connective tissue characterized by loosely interwoven fibers that provide support and elasticity in various body parts.