Question
To Calculate the total Haircut of the Given bonds Position Symbol Currency Maturity Date Years to Maturity Quantity Price(USD) Market Value(USD) Haircut Rate Grade Haircut
To Calculate the total Haircut of the Given bonds
| Position Symbol | Currency | Maturity Date | Years to Maturity | Quantity | Price(USD) | Market Value(USD) | Haircut Rate | Grade | Haircut Amount |
| 0F3902PP7 Corp | USD | 1/2/2020 | 2 | 185,000 | .99 | 18,225 | 5% | Investment | |
| 38144LAB6 Corp | USD | 1/9/2022 | 4 | 465,000 | 1.04 | 481,275 | 6% | Investment | |
| 605360QF Muni | USD | 15/8/2041 | 23 | 1,5000,000 | 1 | 1,500,000 | 7% | Investment | |
| 794458CM Muni | USD | 15/8/2026 | 8 | 915,000 | 1 | 915,000 | 5.5% | Investment | |
| 929903CF7 Corp | USD | 15/9/2019 | 1 | 543,000 | 1.04 | 564,720 | 3% | Investment | |
| 007903AS6 Corp | USD | 1/8/2025 | 7 | -1,5000,000 | 1.04 | -1,552,500 | 20% | Junk |
Assume tentative net capital of the firm is 1 Billion
What is the total Haircut amount in USD?
Note: Is the haircut simply the sum of the haircut rates multiplied to the absolute market value of all the bonds? Can any of the bonds be excluded and does the undue concentration charge apply to any of the bonds?
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Management Accounting
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen
6th Edition
0077185536, 978-0077185534
