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Three decimal places A commercial bank does a reverse repurchase agreement (or reverse repo) with a corporate customer who needs funds for 6 days. The
Three decimal places
A commercial bank does a reverse repurchase agreement (or reverse repo) with a corporate customer who needs funds for 6 days. The bank agrees to buy Treasury securities from the corporation at a price of $1,000,000 and promises to sell the securities back to the corporate customer for $1,000,281 after 6 days. Calculate the yield on the reverse repo. Please round the final answer to three decimal places in percentage form. (Write the percentage sign in the "units" box) YourStep by Step Solution
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