CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

In a repo, any coupon paid by the security during the repurchase agreement belongs to ______.

A. the borrower
B. the lender
C. the broker
Correct Answer: A

User Contributed Comments 4

User Comment
bmueller82 Why isn't it the lender. Isn't he holding the security during the repurchase agreement?
HolzGe1 From the textbook:
"Note that any coupon paid by the security during the repurchase agreement belongs to the seller of the security (i.e., the borrower of cash)."
davidt876 It would add too much complexity to the agreement to have to factor in the coupon
unknown Borrower of Money
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