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Calculate the yield on the reverse repo

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Reference no: EM133119285

A commercial bank does a reverse repurchase agreement (or reverse repo) with a corporate customer who needs funds for 7 days. The bank agrees to buy Treasury securities from the corporation at a price of $1,000,000 and promises to sell the securities back to the corporate customer for $1,000,247 after 7 days. Calculate the yield on the reverse repo.

Reference no: EM133119285

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