A 182-Day Treasury Bill with a face value of GHC180,000 was sold at a price of GHC160,000. Calculate the percentage and the cedi discounts on the Bill Calculate the interest and coupon equivalent yields on this Bill After holding the Bill for one-half of its maturity period or days it was used as a collateral in a repurchase agreement with a bank for an amount equivalent to 92.5% of the face value of the Bill and repurchased in 5 days later. How much did the bank earn on this repo agreement and what is the repo rate on the transaction?
A 182-Day Treasury Bill with a face value of GHC180,000 was sold at a price of GHC160,000. Calculate the percentage and the cedi discounts on the Bill Calculate the interest and coupon equivalent yields on this Bill After holding the Bill for one-half of its maturity period or days it was used as a collateral in a repurchase agreement with a bank for an amount equivalent to 92.5% of the face value of the Bill and repurchased in 5 days later. How much did the bank earn on this repo agreement and what is the repo rate on the transaction?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A 182-Day Treasury Bill with a face value of GHC180,000 was sold at a price of GHC160,000.
- Calculate the percentage and the cedi discounts on the Bill
- Calculate the interest and coupon equivalent yields on this Bill
- After holding the Bill for one-half of its maturity period or days it was used as a collateral in a repurchase agreement with a bank for an amount equivalent to 92.5% of the face value of the Bill and repurchased in 5 days later. How much did the bank earn on this repo agreement and what is the repo rate on the transaction?
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