Question
What is the return on capital for a trader who enters into a 30-day repo where the initial price of the T-Bond at t=0 is
What is the return on capital for a trader who enters into a 30-day repo where the initial price of the T-Bond at t=0 is 98.5 and the price of the bond at t=T is $99.01? Assume the repo rate is 0.625% and haircut is 4%.
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V14 fx 4 5 Initial Price 6 haircut 7 8 Purchase price ...
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College Accounting Chapters 1-30
Authors: John Price, M. David Haddock, Michael Farina
15th edition
1259994975, 125999497X, 1259631117, 978-1259631115
