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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 $24.995,000, 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 $24.995,000, with the promise to buy them back at a price of $25,000,000 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 21-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)) % Yield on the repo Yield on the repo b. %

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