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zvonat [6]
3 years ago
11

Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price

of $33,950,000, with the promise to buy them back at a price of $34,000,000. a. Calculate the yield on the repo if it has a 5-day maturity. b. Calculate the yield on the repo if it has a 15-day maturity.
Business
1 answer:
Bad White [126]3 years ago
3 0

Answer:

a. 10.60%

b. 3.53%

Explanation:

a. Calculate the yield on the repo if it has a 5-day maturity.

Profit = $34,000,000 − $33,950,000 = $50,000

Using 360 days a year, we have:

Yield on the repo = ($50,000/$33,950,000)*(360/5) = 0.1060, or 10.60%

b. Calculate the yield on the repo if it has a 15-day maturity.

Using 360 days a year also, we have:

Yield on the repo = ($50,000/$33,950,000)*(360/15) = 0.0353, or 3.53%

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azamat

Answer:

The correct option is B that is 0.45

Explanation:

Computing the Current Ratio with the formula which is as:

Current Ratio (CR)  = Current Assets (CA) / Current Liabilities (CL)

where

Current Ratio (CA) is $477.50

Current Liabilities (CL) is $1075

Putting the values in the above formula of Current Ratio (CR):

= $477.50 / $1075

= 0.444 or 0.45

Note 1: Inventory will not be included while computing the current ratio, as it is already been added in the current assets. Therefore, there is no need of adding it twice in the Assets.

Note 2: This is the correct formula for computing the current ratio and I computed the same with the given information, so it 0.45 is the correct answer.

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Answer: Option (D)

Explanation:

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3 years ago
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Answer:

Fear appeal.

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hope this helps

have a good day :)

Explanation:

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Answer:

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