QUESTION: 17 Topic: 1, Volume A

The tom/next GC repo rate for German government bonds is quoted to you at 1.75-80%. As collateral, you sell EUR 10,000,000.00 million nominal of the 5.25% Bund July 2012, which is worth EUR 11,260,000.00. If you have to give an initial margin of 2%, the Repurchase Price is:

EUR 11,035,336.41
EUR 11,035,351.74
EUR 11,039,752.32
EUR 11,039,767.65

Answer(s): D

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QUESTION: 18 Topic: 1, Volume A

A bond is trading 50 basis points special for 1 week, while the 1-week GC repo rate is 3.25%. If you held GBP 10,500,000.00 of this bond, what would be the cost of borrowing against it in the repo market?