Question
An investor has just purchased some Treasury securities with an agreement to sell them back at a total price of $100,500 at the end of
An investor has just purchased some Treasury securities with an agreement to sell them back at a total price of $100,500 at the end of a 30-day period.The yield (i.e. repo rate) on this repurchase agreement is 6%.How much total interest will this investor earn?
____
A)$500
B)$5,000
C)$6,000
D)Undetermined
Hint:Use a year of 360 days to simplify the calculation.
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International Financial Reporting Standards An Introduction
Authors: Belverd E. Needles, Marian Powers
3rd Edition
1133187943, 978-1133187943
