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Suppose a bank enters into a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $
Suppose a bank enters into a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $ 23, 000,000 with a promise to buy them back at a price of $ 24,000,000. Calculate the bond equivalent yields and the equivalent annual returns for this repurchase agreement with a 7-day maturity.
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