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Suppose a manager wants to borrow $ 5 0 million of a Treasury security that it plans to purchase and hold for 2 0 days.
Suppose a manager wants to borrow $ million of a Treasury security that it plans to purchase and hold for days. The manager can enter into a repo agreement with a dealer firm that would provide financing at a repo rate and a margin requirement. What is the dollar interest cost that the manager will have to pay for the borrowed funds?
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