What is the dollar value of the repo expense

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Reference no: EM131064566

Assume that a dealer uses a 90-day repo of 5.90% to fund an investment in a 91-day Treasury Bill with a discount yield of 6%. Also suppose that there is a haircut of 20 basis points on the collateral.

What is the dollar value of the repo expense?

Reference no: EM131064566

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What is the dollar value of the repo expense : Assume that a dealer uses a 90-day repo of 5.90% to fund an investment in a 91-day Treasury Bill with a discount yield of 6%. Also suppose that there is a haircut of 20 basis points on the collateral. What is the dollar value of the repo expense?

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