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3I0-012 · Question #409

3I0-012 Question #409: Real Exam Question with Answer & Explanation

The correct answer is D. EUR 27,948,871.97. 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 2015, which is worth EUR 28,137,500.00. If you impose an initial margin of 1%, the Repurchase Price is:

Options

  • AEUR 27,947,276.43
  • BEUR 27,946,077.08
  • CEUR 27,950,071.43
  • DEUR 27,948,871.97

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