A South African bank experiences a financial deficit and enters into a classic fixed 91 day repurchase agreement with the SARB at a repo rate of 3.50%FOUR of the following bonds serve as the underlying instrument for this transaction Government Bond Principal R 3 950 000 Issue date: 11 January 2021 Expiry date: 31 March 2045 Coupon rate10.73% Coupon payment dates: 31 March and 30 September The bond register closes one month before the coupon payment dates] Market price of the bond on the start date of the repo R 101.742% Market price of the bond on the end date of the report R 100.442%. Under this agreement what is the amount of interest paid?

Answer rating: 100% (QA)

Based on the information provided the amount of interest paid on the repurchase agreement is R 34... View the full answer