Determine what is the yield on the repurchase agreement

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Reference no: EM13329401

A bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of $19,945,000, with the promise to buy them back at a price of $20,000,000. What is the yield on the repurchase agreement if it has a 7-day maturity?

Reference no: EM13329401

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