A bank is short of cash to meet Bank of Ghana reserve requirement overnight and it is therefore selling treasury bills of face value of GHS250 million to a discount house at a price of GHS249.82 million. The bank agrees to repurchase the T. Bills back at GHS250 million the next day. Calculate the repurchase (REPO) rate p.a. on the transaction.
A bank is short of cash to meet Bank of Ghana reserve requirement overnight and it is therefore selling treasury bills of face value of GHS250 million to a discount house at a price of GHS249.82 million. The bank agrees to repurchase the T. Bills back at GHS250 million the next day. Calculate the repurchase (REPO) rate p.a. on the transaction.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A bank is short of cash to meet Bank of Ghana reserve requirement overnight and it is therefore selling treasury bills of face value of GHS250 million to a discount house at a price of GHS249.82 million. The bank agrees to repurchase the T. Bills back at GHS250 million the next day. Calculate the repurchase (REPO) rate p.a. on the transaction.
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