Assume that you made a repo transaction in which you sold securities for 50 million TL and will buy the securities back for 50,025,000 one day later. What is the repo rate to you? Why would you do such transaction?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
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Chapter8: Securities Law Considerations When Obtaining Venture Financing
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Assume that you made a repo
transaction in which you sold securities
for 50 million TL and will buy the
securities back for 50,025,000 one day
later. What is the repo rate to you?
Why would you do such transaction?
Transcribed Image Text:Assume that you made a repo transaction in which you sold securities for 50 million TL and will buy the securities back for 50,025,000 one day later. What is the repo rate to you? Why would you do such transaction?
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