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help!! Question 9 (10 points) A bank enters into a repurchase agreement in which it agrees to sell Treasury securities to another bank at a
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Question 9 (10 points) A bank enters into a repurchase agreement in which it agrees to sell Treasury securities to another bank at a price of $24,972,000, with a promise to buy them back at a price of $25,000,000 in 9 days. Repo yields are expressed as single payment yields. What is the single payment yield on this repo? Answer in percent to three decimal places. Omit the percent sign. Your Answer: Answer Question 10 (10 points) A muni pays a 6.65% annual return. If your marginal tax rate is 28%, what is the tax equivalent yield? (Note this is not the after-tax yield, but rather the other one I showed you.) Answer in percent to 2 decimal places. Omit the percent sign. Assume you pay no taxes on the municipal bond. YourStep by Step Solution
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