Question: Suppose a manager wants to borrow using a Treasury security she currently holds as collateral. The portfolio manager can enter a repo with a dealer

Suppose a manager wants to borrow using a Treasury security she currently holds as collateral. The portfolio manager can enter a repo with a dealer firm that would provide financing at a 10% repo rate. The repo term is 30 days and the nominal amount of the contract is USD 100 million. What is the dollar interest cost that the manager needs to pay? 833,333.33 826.446.28 100,000,000 837.243.54 None

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