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Explain how the repurchase agreement would work in case

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1. ] A security dealer plans to purchase $100 million of T-notes at the next auction. The dealer anticipates holding the securities one day and plans to finance the purchase with an overnight repurchase agreement. Currently overnight repo rates are at 3%.

-Explain how the repurchase agreement would work in this case?

-Determine the dollar interest, selling price, and repurchase price on the repurchase agreement?

-What type of repurchase agreement would the dealer need if there was a possibility that it could take several days to sell the securities?

Reference no: EM132791041

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