How much collateral does the dealer need

Assignment Help Finance Basics

Reference no: EM132176347

Question - A dealer needs to borrow EUR 30 million. He uses a Bund as collateral. The Bund has the following characteristics:

• Collateral 4.3% Bund, June 12, 2004

• Price: 100.50

• Start date: September 10

• Term: 7 days

• Repo rate: 2.7%

• Haircut: 0%

a. How much collateral does the dealer need?

b. Two days after the start of the repo, the value of the Bund increases to 101. How much of the securities will be transferred to whom?

c. What repo interest will be paid?

Reference no: EM132176347

Questions Cloud

Discuss intellectual property risk in strategic alliance : VW and Tata Motors made the decision to work with each other as alliance partners. Discuss Intellectual Property risk in this strategic alliance.

What are the sources of revenue the organization has : Fundraising: What are the sources of revenue the California Youth Outreach organization has in order to fund its services?

Explain the concept of adult learning theory : Describe the concept of adult learning theory and discuss how it influences employee training - explain the concept of adult learning theory

Describe one good and one bad service experience : Describe one good and one bad service experience that you encountered. How did this change your perceptions of the company?

How much collateral does the dealer need : A dealer needs to borrow EUR 30 million. He uses a Bund as collateral. How much collateral does the dealer need

Establish a relationship between ideas or themes : Compare and contrast, explore, develop/build on, analyze, reflect or interpret the overriding theme of selected scholarly resources.

Explain the potential personal liability to acme fireworks : You are the manager of Acme Fireworks, a fireworks retailer who sells fireworks, puts on ground display fireworks, and large aerial display fireworks.

Create an outline of the website : Describe the major features of this Website and how each feature can be used to monitor employee benefits - Explain how employers could verify that their employ

In what way would the paris agreement impact your position : Do you believe that we will experience significant global warming during this century due to air pollution? In what way would the Paris Agreement impact.

User Account

All Pages