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3I0-012 · Question #90

The two-week repo rate for the 5.25% Bund 2014 is quoted to you at 3.33-38%. You agree to reverse in bonds worth EUR 266,125,000.00 with no initial margin. You would earn repo interest of:

The correct answer is B. EUR 344,632. See the full explanation below for the reasoning.

Question

The two-week repo rate for the 5.25% Bund 2014 is quoted to you at 3.33-38%. You agree to reverse in bonds worth EUR 266,125,000.00 with no initial margin. You would earn repo interest of:

Options

  • AEUR 349,806
  • BEUR 344,632
  • CEUR 319,315
  • DEUR 324,110

How the community answered

(54 responses)
  • A
    6% (3)
  • B
    72% (39)
  • C
    15% (8)
  • D
    7% (4)

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