1. Choose one Financial intermediary from each type of non-banking institutions (long-term saving institutions, risk spreaders and risk takers) and explain how they channel household savings into financial investment (200 words max)
2. The annualised yield on a repo with an initial sale value of £800,000 is 1.85 per cent. The repo has 61 days until maturity. (a) What will be the repurchase price? (b) If the days to maturity are 92, what will be its future purchase price? Use a 360-day count convention throughout.