A certain investor has approached you wishing to set up a repurchase agreement for $15,000,000 for 15 days. You have agreed to do so but will require collateral of $17, 200,000 in U.S. Treasury bills with a repro rate of 3.122% to structure the deal. What is the size of the haircut in this deal?

A certain investor has approached you wishing to set up a repurchase agreement for $15,000,000 for 15 days. You have agreed to do so but will require collateral of $17, 200,000 in U.S. Treasury bills with a repro rate of 3.122% to structure the deal. What is the size of the haircut in this deal?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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