The selling price is added in to repurchase agreement paid interest to calculate ____________?
Correct answer: B. repurchase price of securities
- A. direct price of security
- B. repurchase price of securities
- C. purchase price of security
- D. transaction price of securityInvesting
Explanation
In a repurchase agreement, the repurchase price equals the original selling price plus the agreed repo interest. Therefore, adding the interest to the selling price gives the repurchase price of the securities.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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