question archive 1)Which of the following are typical repurchase agreement denominations? Check all that apply
1)Which of the following are typical repurchase agreement denominations? Check all that apply
Subject:FinancePrice: Bought3
1)Which of the following are typical repurchase agreement denominations? Check all that apply.
-$100,000
-$500,000
-$40,000,000
-$60,000,000
2)Which of the following are characteristics of repurchase agreements? Check all that apply.
-Their maturities are normally between 1 and 15 days, 1 month, 3 months, or 6 months.
-The size of the repo market is approximately $5 trillion.
-There is no secondary market for repurchase agreements.
-Their denominations are typically less than $10 million.
3)Suppose Crystal initially purchased securities at a price of $9,850,000 while agreeing to sell them back to the original owner at a price of $10,000,000 at the end of a 3-month period. Assuming a 360 day year, the yield (or repo rate) on this repurchase agreement is:
-5.54%
-6.09%
-6.21%
-6.70%
