ACI
3I0-012 · Question #438
The two-week repo rate for the 5.25% Bund 2011 is quoted to you at 3.33-38%. You agree to reverse in bonds worth EUR 266,125,000.00, but insist on an initial margin of 2%. You would earn repo…
The correct answer is A. EUR 337,874A0. See the full explanation below for the reasoning.
Question
The two-week repo rate for the 5.25% Bund 2011 is quoted to you at 3.33-38%. You agree to reverse in bonds worth EUR 266,125,000.00, but insist on an initial margin of 2%. You would earn repo interest of:
Options
- AEUR 337,874A0
- BEUR 342,947.58
- CEUR 337,739.24
- DEUR 342,810.40
How the community answered
(31 responses)- A77% (24)
- B13% (4)
- C3% (1)
- D6% (2)
Community Discussion
No community discussion yet for this question.