Question suppose a manager wants to borrow 50 million of a, Ask an Expert

Finance

Question: Suppose a manager wants to borrow $50 million of a Treasury security that it plans to purchase and hold for 20 days. The manager can enter into a repo agreement with a dealer firm that would provide financing at a 4.2% repo rate and a 2% margin requirement. What is the dollar interest cost that the manager will have to pay for the borrowed funds?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92589792

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Oceangate sells external hard drives for 300 each its total

OceanGate sells external hard drives for $300 each. Its total fixed costs are $30 million, and its variable costs per unit are $240. The corporate tax rate is 30%. If the economy is strong, the firm will sell 2 million d ...

How could legislation impact on operations within your

How could legislation impact on operations within your organisation in relation to innovation, project management, and operational planning? Briefly outline any relevant requirements (e.g. intellectual property, WHS).

Question - how is cash flow different than net income what

Question - How is cash flow different than net income? What are some items included in the cash flow statement that are not included in the profit and loss statement? Write a 3-6 paragraph response to the above question( ...

1 define organizational communication2 what interesting

1. Define organizational communication 2. What interesting about the subject of organizational communication

You purchases a house for 18133300 you made a down payment

You purchases a house for $181,333.00 . You made a down payment of 20,000 and the remainder of the purchase price was financed with a mortgage loan. The mortgage loan is a 30 year mortgage with an annual interest rate of ...

A work-at-home opportunity is available in which you will

A work-at-home opportunity is available in which you will receive 3 percent of the sales for customers you refer to the company. The cost of your "franchise fee" is $600. How much would your customers have to buy to cove ...

Discuss the core business objectives and the primary focus

Discuss the core business objectives and the primary focus of the financial business model.

What is the present value of 24000 to be received 32 years

What is the present value of $24,000 to be received 32 years from today if the annual rate is 10%? [use semi-annual compounding]

It is now may 1 2015 and timmy has just purchased a

It is now May 1, 2015, and Timmy has just purchased a five-year U.S. government bond (FV = $1,000) with a quoted price of 93.779. This bond has a 6-percent coupon rate, and the last semi-annual coupon payment was made on ...

You would like to retire in 39 years the expected rate of

You would like to retire in 39 years. The expected rate of inflation is 01.00% per year. You currently have a standard of living that requires $7,442 of monthly expenses. Assuming you want to maintain the same standard o ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert