Suppose the Hedge fund in 17 nanced their $100 million of MES by using seven-day repurchase agreements

Suppose the Hedge fund in 17 financed their $100 million of MES by using seven-day repurchase agreements in addition to their investors' capital. Assuming they borrow the maximum amount, the required haircut is 10%, and the interest rate is 2% per year, which of the following is closest.

How much interest they will owe at the end of the first seven-day term?

Answer rating: 100% (QA)

Based on the information provided the hedge fund borrowed 100 mi... View the full answer