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ABC Corp. entered into a repurchase agreement with DEF Inc. today. Specifically, ABC agreed to repruchase fed funds from DEF for $5 million dollars in
ABC Corp. entered into a repurchase agreement with DEF Inc. today. Specifically, ABC agreed to repruchase fed funds from DEF for $5 million dollars in 90 days. How much will DEF pay for the fed funds today if the yield on the repo is 4%? Round intermediate steps to four decimals. 4.8077 4.80 4.9505 5.05
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