Question
Everything that needs to be utilized can be found in these two links and the instructions are complete. In Questions 1a to 1e, you will
Everything that needs to be utilized can be found in these two links and the instructions are complete.
In Questions 1a to 1e, you will work with data relevant to the Fed's discount rate window operations. The most relevant data sources here will likely be. Please copy and paste this in your browser.
https://www.frbdiscountwindow.org (Federal Reserve Discount Window)
https://fred.stlouisfed.org (FRED: Federal Reserve Economic Data).
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1a) What is the current primary discount rate (as of or after February 2, 2023)?
Note: Please enter your answer as a percentage with two digits after the decimal point
1b) What is the current secondary discount rate (as of or after February 2, 2023)?
Note: Please enter your answer as a percentage with two digits after the decimal point
1c) By how much did the primary discount rate increase between July 1, 2003 and July 15, 2006 (in percentage points)? In other words, please calculate the simple difference between the primary discount rates in effect on these two dates.
Note: Please enter your answer as a percentage with two digits after the decimal point
1d) In evaluating the collateral for the Fed's discount window loans, how much credit would a bank receive for $100 fair market value (FMV) in two-year Treasury Bonds? Please double-check that you are using the current and not the future or past Collateral Margin Tables (i.e., use collateral tables with an effective date of March 14, 2022).
Note: Please enter your answer as a whole number, rounded to the nearest integer
1e) In evaluating the collateral for the Fed's discount window loans, how much credit would a bank receive for $100 fair market value (FMV) in BBB-rated non-financial U.S-dollar denominated corporate bonds with a remaining maturity of 6 years? Please double-check that you are using the current and not the future or past Collateral Margin Tables (i.e., use collateral tables with an effective date of March 14, 2022).
Note: Please enter your answer as a whole number, rounded to the nearest integer
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