On January 2, 20X5, Community Bank entered into a repurchase agreement with Small Town Bank to fund its short-term funding need. Community Bank has a correspondent bank account (a due from account) at Small Town Bank. Assume that Community Bank "sold" a 6%, $2,000,000 par value U.S. Treasury security under a 14-day repurchase agreement. The agreement requires a 2% collateral margin. The repurchase agreement states that Small Town Bank will advance $2,000,000 to XYZ Bank on January 2, 20X5, and that XYZ Bank will be required to pay back $2,004,000 on January 15, 20X5. A. What is Community Bank's cost of funds for this transaction, assuming a 365-day year? B. Under the terms of the agreement, what is the minimum fair value of the assets required to be pledged by Community Bank?