What Is the Purchase Price of a Repo

question 279

Multiple Choice

What is the Purchase Price of a repo?

• A) The market value of bond collateral at the start of the repo at the clean price of the bond
• B) The market value of bond collateral at the start 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:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, often used in calculating cost of goods sold or inventory valuation.

Sales Proportion

The ratio or percentage of a product's sales in relation to total sales of all products, indicating its market performance.

Cost-Volume-Profit Graph

A visual representation that shows how changes in cost and volume affect a company's profit.

Step-Wise Costs

Costs that remain fixed over a range of activity but will increase in a step-like manner when a certain threshold is reached.