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Repos: Suppose Bank A needs to borrow $10,000,000 to meet reserve requirements. Bank B is willing to lend to Bank A, so Bank A agrees

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Repos: Suppose Bank A needs to borrow $10,000,000 to meet reserve requirements. Bank B is willing to lend to Bank A, so Bank A agrees to give Treasury Notes it owns to Bank B in exchange for $10,000,000 in cash at an interest rate of 3%. This is an overnight repurchase agreement, so Bank A will repurchase the notes tomorrow. How much will Bank A have to pay Bank B tomorrow to repurchase the notes

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