Question
11. Assume a sovereign bond has a haircut of 5% and is used for a collateral call of $100,000. What amount is credited if a
11. Assume a sovereign bond has a haircut of 5% and is used for a collateral call of $100,000. What amount is credited if a $100,000 bond is submitted, and what amount of bond is needed for $100,000 to be credited, respectively?
A. $100,000; $106,263.
B. $93,000; $100,000.
C. $95,000; $105,263.
D. $105,263; $95,000.10.
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Fundamentals Of Financial Management
Authors: James C Van Horne
3rd Edition
0133393410, 978-0133393415
