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2. Suppose a bank enters a repurchase agreement in which it agrees to sell Treasury securities to a correspondent bank at a price of $24,950,

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2. Suppose a bank enters a repurchase agreement in which it agrees to sell Treasury securities to a correspondent bank at a price of $24,950, with the promise to buy them back at a price of $25,000 (a) Calculate the repo yield (iRA) if it has a 7-day maturity. (b) Calculate the repo yield (iRA) if it has a 21-day maturity

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