Consider a T-note currently trading at a price of $9,800. You are entering into a 14-day

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Consider a T-note currently trading at a price of $9,800.

• You are entering into a 14-day repo to repo out the T-note. Assume a haircut of 3% and the 14-day repo rate is 4% p.a.

How much will you pay or receive at the end of the 14-day period?

• Describe a scenario where the above 14-day repo rate can be significantlynegative.

Related Book For answer-question

Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Posted Date: Apr 11, 2023 04:24 AM

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Consider a T-note currently trading at a price of $9,800. You are entering into a 14-day

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Microeconomics

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