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Question
A bank plans on borrowing $150 million through an RP transaction collateralized by T-bills. It plans on borrowing the money for 5 days and the current RP rate is 5.25 percent. What is the bank's total interest cost in dollars?
A. $7,875,000
B. $107,877
C. $21,875
D. $109,375
E. None of the options is correct
Answer
This answer is hidden. It contains 1 characters.
Related questions
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C. Investment income is added to gross interest received.
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