Q3. Suppose a bank enters a REPOS in which it sells Treasury securities from one of...

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Q3. Suppose a bank enters a REPOS in which it sells Treasury securities from one of its correspondent banks at a price of RM10mil, with a promise to repurchase at a price of RM10.006mil after 5 days. Calculate the interest/ yield on this REPOS. Q4. If RM1,000,000 Treasury Bills with 200 days to maturity is sold at 2.75%, what is the cost to purchase? Q5. What is Negotiable Instrument of Deposit (NID). List out types of NIDS Q6. An NID for RM50,000 is issued for 91 days at 10.0% p.a. What is the proceeds of that NIDs on maturity? Q7. An NID for RM50,000 is issued for 91 days at 10.0% p.a. and to be sold when it has 48 days to maturity at 8.5%. What are the sales proceeds of that NIDS? Q3. Suppose a bank enters a REPOS in which it sells Treasury securities from one of its correspondent banks at a price of RM10mil, with a promise to repurchase at a price of RM10.006mil after 5 days. Calculate the interest/ yield on this REPOS. Q4. If RM1,000,000 Treasury Bills with 200 days to maturity is sold at 2.75%, what is the cost to purchase? Q5. What is Negotiable Instrument of Deposit (NID). List out types of NIDS Q6. An NID for RM50,000 is issued for 91 days at 10.0% p.a. What is the proceeds of that NIDs on maturity? Q7. An NID for RM50,000 is issued for 91 days at 10.0% p.a. and to be sold when it has 48 days to maturity at 8.5%. What are the sales proceeds of that NIDS?

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Q3 To calculate the interest or yield on a Repurchase Agreement REPO you need to use the following formula Interest Repurchase Price Original Price Or... View the full answer