Use the following information to solve for the effective borrowing cost for a repurchase agreement with a three-day term: Face value of Treasury bills = $10,000,000 Current market value of Treasury bills = $9,850,000 Face value of Treasury bills = $10,000,000 Current market value of Treasury bills = $9,850,000 Value exchanged at initiation of repurchase agreement = $9,845,000 Investor agrees to repurchase the Treasury bills for $9,847,000 .