The repurchase price is subtracted from selling price, divided by selling price and multiplied to 360 by number of days, Up to maturity to calculate _____________?
Correct answer: A. repurchase agreement yields
- A. repurchase agreement yields
- B. purchase agreement yields
- C. repurchase yields
- D. transaction yields
Explanation
A repurchase agreement yield uses the difference between the repurchase and selling prices, annualised over the 360-day money-market year and adjusted for the term. It therefore measures the return on a repurchase agreement.
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