What was the size of the loan that nissan granted

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Problem 1: Suppose that a dealer borrows cash through a $100 million RP from a manufacturing corporation for one day. If the dealer will have to pay $3,500 in interest on this loan, what is the current RP loan rate?

Problem 2: An automobile company, Nissan, has a temporary cash surplus and lends its funds overnight through a repurchase agreement to a government securities dealer, earning $6,500 in interest income when the RP loan rate stood at 2.25 percent. What was the size of the loan that Nissan granted to the securities dealer?

Reference no: EM132966305

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