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Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $20,950,000, with

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Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $20,950,000, with the promise to buy them back at a price of $21,000,000. a. Calculate the yield on the repo if it has a 6-day maturity. b. Calculate the yield on the repo if it has a 18-day maturity. (For all requirements, use 360 days in a year. Do not round intermediate calculations. Round your answers to 5 decimal places. (e.g., 32.16161)) a. b. Yield on the repo Yield on the repo %

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