Suppose A Bank Enters A Repurchase Agreement In Which It Agrees To Buy Treasury Securities

29. A bank must borrow $5 million from the Central Bank. The Bank enters into a pension agreement with the central bank for Z days at an interest rate of 0.6% per annum. The bank is selling a $5 million cash portfolio. What would be the redemption value of this deposit? (10 marks) 30. Calculate the duration of the next bond and discuss how the maturity changes with YTM, the maturity, coupon and face value. This debt security has… (a) Purchase price or cash value – 22950000 Buy-in price or future value – 23000,000 days to maturity 5 Yield on restz – [future value/naked value) – 1] x year/number of days (23000000/22950000)-1)-360/5 0.1568627451 in % 15.68627% .