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3I0-012 · Question #4

3I0-012 Question #4: Real Exam Question with Answer & Explanation

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Question

The tom/next GC repo rate for German government bonds is quoted to you at 1.75-80%. As collateral, you sell EUR 10,000,000.00 nominal of the 5.25% Bund July 2012, which is worth EUR 11,260,000.00, with no initial margin. The Repurchase Price is:

Options

  • AEUR 10,000,500.00
  • BEUR 10,000,486.11
  • CEUR 11,260,563.00
  • DEUR 11,260,547.36

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