Question: Write out formulas please, thank you! 4) You decide to borrow $500,000.00 for 339 days on a repo. Your dealer quotes you a rate
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Write out formulas please, thank you!
4) You decide to borrow $500,000.00 for 339 days on a repo. Your dealer quotes you a rate of 8.40% with a haircut of 1.500%. You reverse out a portfolio of T-Bills worth at least $ Interest on the loan is $ so you will repay your dealer $ The money market yield on this loan is and the straight yield on this loan is 4) You decide to borrow $500,000.00 for 339 days on a repo. Your dealer quotes you a rate of 8.40% with a haircut of 1.500%. You reverse out a portfolio of T-Bills worth at least $ Interest on the loan is $ so you will repay your dealer $ The money market yield on this loan is and the straight yield on this loan is
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