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A dealer enters an overnight repurchase agreement with a counterparty by agreeing to sell U.S. Treasuries with a market value of $9,579,551.63 to the counterparty
A dealer enters an overnight repurchase agreement with a counterparty by agreeing to sell U.S. Treasuries with a market value of $9,579,551.63 to the counterparty at a repo yield of 0.35%. What is the total payment that the dealer must make to the counterparty at the end of the repurchase agreement? (Hint: Calculate the required interest payment). What is the bond equivalent yield? Note: Round your yield calculations to four decimals.
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