Calculate the yield on the repo if it has five-day maturity

Assignment Help Financial Management
Reference no: EM132020585

Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $31,950,000, with the promise to sell them back to the correspondent bank at a price of $32,000,000.

a. Calculate the yield on the repo if it has a 5-day maturity. (Use 360 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Yield on the repo       %

b. Calculate the yield on the repo if it has a 15-day maturity. (Use 360 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Yield on the repo            %

Reference no: EM132020585

Questions Cloud

What is expected return on the portfolio : what is the expected return on the portfolio?
What is required rate of return : What is the required rate of return? Round your answer to two decimal places. ________ %
What is the stock current value per share : The required rate of return on the stock, rs, is 19%. What is the stock's current value per share?
Define greatest financial obstacle to quality in health care : What is the greatest financial obstacle to quality in health care? Include research and anecdotal evidence to defend your claims. 200 words with reference.
Calculate the yield on the repo if it has five-day maturity : Calculate the yield on the repo if it has a 5-day maturity. Calculate the yield on the repo if it has a 15-day maturity.
Discuss the traditional annual evaluation method : Imagine that you are a director of performance management. With this role in mind, briefly compare and contrast the traditional annual evaluation method.
What is required rate of return : What stock price is expected 1 year from now? What is the required rate of return?
Is perceived unfair pay ratio a personal issue for humans : After watching the video, answer the following question: Is perceived unfair pay ratio a personal issue for humans as well? Explain your response.
Calculate each project equivalent annual cost : Calculate each project's equivalent annual cost (EAC) given a discount rate of 10 percent.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd