A lender engages in a 15-day $1,000,000 reverse repo at a rate of 2.50%. The haircut is
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A lender engages in a 15-day $1,000,000 reverse repo at a rate of 2.50%. The haircut is 2%. The current market value of the loan is $980,000. calculate what rate of return did the lender earn on annualized basis? Use 360-day for annualization.
Related Book For
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
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