Suppose a bank enters a repurchase agreement in

which it agrees to buy Treasury securities from a

correspondent bank at a price of $22,950,000 with the

promise to buy them back at a price of $23000000

a. Calculate the yield on the repo if it has a 5-day maturity

Do not round intermediate calculations. Round your

places. (e.g., 32.16161)

Yield on the repo

%

b.Calculate the yield on the repo if it has a 16-day matur

year. Do not round intermediate calculations. Round 5 decimals

places. (e.g., 32.16161)

Yield on the repo

%