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Suppose a bank enters a repurchase agreement in which it agrees to sell Treasury securities to a correspondent bank at a price of $9908946 with

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Suppose a bank enters a repurchase agreement in which it agrees to sell Treasury securities to a correspondent bank at a price of $9908946 with the promise to buy them back at a price of $10000065 Calculate the yield on the repo if it has a 5-day maturity (wise your answer in percentage and round it to 2 decimal places) Question 10 A company has excess liquidity that needs to be invested for 5 days, which of the following instruments is the best choice? Commercial paper. Corporate bond Reverse repo. T

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