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Consider the following repo market data: Underlying: A 7%, 20- year bond, $5 million...

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Finance

Consider the following repo market data: Underlying: A 7%, 20- year bond, $5 million par value The market value of the bond is $4.2 million It sells for $3.8 million, with a repurchase price of $3.9 million in 90 days

What is the annualized 90-day repo rate? A number please! What is the repo margin? A number please! What is the significance of the repo margin and how is that related to the credit risk associated with repo arrangements? Explain.

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