5. In the repo example on slide we saw that a repurchase price of USD 10,000,342.47 on a USD 10 million 1-day repo corresponded to a repo rate of 1.25%/ year. If the rate on a 2-day repo is 1.30% what would be the repurchase price be for USD 15 million? Since the repo rate for 7 days is given by Pt+T - Pt 365 Trepo = (15) Pt T T Ptr repo = Pt+T - Pt (16) 365 or Petr = Pt (1 + TT repo (17) 365 and 2 x 0.013 Pt+2 = USD 15 million x (1+ USD 15, 001, 068.49 (18) 365