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3I0-012 · Question #5

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 million nominal of the 5.25% Bund July 2012, which is worth EUR…

The correct answer is D. EUR 11,039,767.65. 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 million nominal of the 5.25% Bund July 2012, which is worth EUR 11,260,000.00. If you have to give an initial margin of 2%, the Repurchase Price is:

Options

  • AEUR 11,035,336.41
  • BEUR 11,035,351.74
  • CEUR 11,039,752.32
  • DEUR 11,039,767.65

How the community answered

(35 responses)
  • A
    14% (5)
  • B
    9% (3)
  • C
    3% (1)
  • D
    74% (26)

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