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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 $35,950,000, with

Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $35,950,000, with the promise to buy them back at a price of $36,000,000. 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.

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