ACI
3I0-012 · Question #4
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…
The correct answer is C. EUR 11,260,563.00. See the full explanation below for the reasoning.
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
How the community answered
(56 responses)- A9% (5)
- B4% (2)
- C84% (47)
- D4% (2)
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