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3I0-012 · Question #160

The one-month (31-day) GC repo rate for French government bonds is quoted to you at 3.75- 80%. As collateral, you are offered EUR 25,000,000.00 nominal of the 5.5% OAT April 2012, which is worth EUR…

The correct answer is A. EUR 28,228,360.69. See the full explanation below for the reasoning.

Question

The one-month (31-day) GC repo rate for French government bonds is quoted to you at 3.75- 80%. As collateral, you are offered EUR 25,000,000.00 nominal of the 5.5% OAT April 2012, which is worth EUR 28,137,500.00. The Repurchase Price is:

Options

  • AEUR 28,228,360.69
  • BEUR 28,229,572.15
  • CEUR 25,080,729.18
  • DEUR 25,081,805.55

How the community answered

(19 responses)
  • A
    79% (15)
  • B
    5% (1)
  • C
    5% (1)
  • D
    11% (2)

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