Problem $5-14($LG $5-2)$

Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $$21,950,000,$ with the promise to buy them back at a price of $$22,000,000.$

a$.$ Calculate the yield on the repo if it has a $7-$day maturity.

b$.$ Calculate the yield on the repo if it has a $19-$day maturity.

$($For all requirements, use $360$ days in a year. Do not round intermediate calculations. Round your percentage answers to $5$ decimal places. $($e$.$g$.,32\mathrm{.}16161))$

$\backslash$table$[[$a$.,$Yield on the repo,$\%$