Question
Determine the annualized implied repo rate on a Treasury bond spread in which the March is bought at 98.7 and the June is sold at
Determine the annualized implied repo rate on a Treasury bond spread in which the March is bought at 98.7 and the June is sold at 99.5. The March CF is 1.225 and the June CF is 1.24. The accrued interest as of March 1 is 0.75 and the accrued interest as of June 1 is 1.22 Answer choices are: a. 5.21% b. 10.03% c. 1.28% d. 2.42% e. 0.81% Why is the correct answer B? Show work.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Ultimate Manual For Newbie Property Investors
Authors: Kimberly K. Benson
1st Edition
979-8866108688
