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74. A bank buys a bond on its coupon payment date. Three months later, in order to generate immediate liquidity, the bank decides to repo

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74. A bank buys a bond on its coupon payment date. Three months later, in order to generate immediate liquidity, the bank decides to repo the bond. Details of the bond and repo transaction are as follows: Notional (USD) 100,000 Coupon (semi-annual) 5% Current bond price (USD) 98 Repo haircut 5% Repo interest rate 3% If the repo contract expires 6 months from now, what is the bank's expected cash outflow at the end of the repo transaction? A. USD 94,497 B. USD 95,702 C. USD 97,630 D. USD 100,739

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