You are considering buying a Repurchase Agreement (i.e., taking a purchase repo position). You uncover the following information about the instrument. Par = $1,000,000 Maturity = 49 days Current price = $ 987,025 What is the Repo's yield?

Entrepreneurial Finance
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Chapter11: Venture Capital Valuation Methods
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You are considering buying a Repurchase Agreement (i.e., taking a
purchase repo position). You uncover the following information
about the instrument.
Par = $1,000,000
Maturity = 49 days
Current price = $ 987,025
What is the Repo's yield?
Transcribed Image Text:You are considering buying a Repurchase Agreement (i.e., taking a purchase repo position). You uncover the following information about the instrument. Par = $1,000,000 Maturity = 49 days Current price = $ 987,025 What is the Repo's yield?
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