Question: Hypothetically, a repo contract has been signed between an Australia Life Insurance company (ALI) and a commercial bank (CB). In the deal, CB has a

Hypothetically, a repo contract has been signed between an Australia Life Insurance company (ALI) and a commercial bank (CB). In the deal, CB has a collateral of 4% (annual coupon rate, semiannual payment) Australia Treasury notes with a clean price of 118. The Nominal value is A$ 10,000,000. Treasury day count is (160 actual)/(365 actual). There are 160 days for accrued interest. The repo term is 31 days, and the repo rate is 0.6%. The Repo rate count is actual/360. Calculate repo purchase price (ALI buys from CB), repo interest rate, and repo repurchase price (CB buys from ALI)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

For the siphon in Fig. 6.26, calculate (a) the volume flow rate of water through the nozzle and (b) the pressure at points A and B. The distances X = 4.6 m and Y = 0.90 m. +B Water 50-mm OD - x...

I need your help in this. today. will be your client. For exclusive use Florida International University, 2015 REVISED SEPTEMBER 6, 2013 CRAIG FURFINE KEL757 The Return of the Loan: Commercial...

I need an expert for this. please check info for details. For exclusive use Florida International University, 2015 REVISED SEPTEMBER 6, 2013 CRAIG FURFINE KEL757 The Return of the Loan: Commercial...

Hi, I am doing a project for derivatives class and I have some questions about a regression and Monte Carlo simulation that I need to come up with. So the goal is to hedge against CDS instruments by...

1. Daniel Dimwit sees an advertisement for a toaster oven at Target for the price of $49.00. When he gets to Target they are all sold out. Sears has the same toaster oven for $60.00. Can Mr. Dimwit...

Caf Paradiso Business Plan - Business Plan 2007/2008 Commercial-in-Confidence Date Sample Table of Contents 1.0 2.0 3.0 4.0 5.0 Executive Summary 1 1.1 Business Opportunity 1 1.2 Product/Service...

Fact Find Initial Interview: Time Date Location Referred by: A. Personal Details Applicant 1 Applicant 2 Full Name of Applicant Full Name of Applicant Mr Mrs Miss OMS Dr Mr Mrs Miss OMs Dr Full Name...

Read the article, "John D.R. Leonard, Plaintiff, -against- PepsiCo, Inc., Defendant," found on the website provided in the Reading & Study folder. Watch the presentations (also found in the Reading &...

please help me. I can pay only 70 dollars in this assignment Topic 1 & 2 Introduction to financial management and the Australian Taxation system Financial Markets 2 Learning Objectives Describe what...

please help me in 70 dollars to do this assignment iin APA style referencing Topic 1 & 2 Introduction to financial management and the Australian Taxation system Financial Markets 2 Learning...

MGMT 479- Strategic Management ANALYZING A CASE STUDY (Revised January 25, 2016) Rubric for Case Study - Maximum Points Available (100 Points) The purpose of the case study is to let you apply the...

Perform a common size analysis and percent change analysis. What do these analyses tell you about Computron?

Shannon Burns enjoys listening to all types of music and owns countless CDs and tapes. Over the years, Shannon has gained a local reputation for knowledge of music from classical to rap and the...

Bharat tire company new production process average tire span 4 0 0 0 0 km what are corrext null and alternative hypotheses

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...