Question: Need help on Question 2. Please use excel and show all work with formulas used. Thanks! Questions 2 (5 marks) On March 2nd, 2020 the
Need help on Question 2. Please use excel and show all work with formulas used. Thanks!
Questions 2 (5 marks) On March 2nd, 2020 the 5-year GoC bond with a coupon of 3% was quoted at a clean price of 99.562. The GoC 3% bond has a September 1st, 2024 maturity date. A bond dealer purchased the bond for settlement on March 3rd, 2020. He would also like to finance the bond trade for 1 day (so repo the bond out for 1 day). The repo settlement date is March 4th, 2020. The repo rate for a term of 1 day is 1.479%. There is no 'hair cut' on this transaction. Using this information, what is the total money borrowed by this dealer on March 4th, 2020? Be specific as it relates to all the components of the trade (accrued interest, repo term interest, total settlement value). Show all of your work and assume a actual/365 day count convention. Questions 2 (5 marks) On March 2nd, 2020 the 5-year GoC bond with a coupon of 3% was quoted at a clean price of 99.562. The GoC 3% bond has a September 1st, 2024 maturity date. A bond dealer purchased the bond for settlement on March 3rd, 2020. He would also like to finance the bond trade for 1 day (so repo the bond out for 1 day). The repo settlement date is March 4th, 2020. The repo rate for a term of 1 day is 1.479%. There is no 'hair cut' on this transaction. Using this information, what is the total money borrowed by this dealer on March 4th, 2020? Be specific as it relates to all the components of the trade (accrued interest, repo term interest, total settlement value). Show all of your work and assume a actual/365 day count convention
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