CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

A two-day loan for which $1,000,000 par value of a bond is sold to the lender at par has a repurchase rate of 3.60%. What is the repurchase price?
A. $1,000,180
B. $1,000,200
C. $1,000,360
Explanation: Repurchase price = original price x (rate x (m/360)+1) = $1,000,200

User Contributed Comments 3

User Comment
myanmar 1,000,000*(3.6%*(2/360)+1)=1,000,000*1,0002=1,000,200
arendb HP 12C:

PV = -1,000,000
n = 2
i = (3.6/365)
FV = Calc
sierrablue correction for n ->i=(3.6/360)
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