What is the yield on the repo, Finance Basics

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What is the yield on the repo

Problem

Suppose that a bank enters a reverse repurchase agreement in which it agrees to buy fed funds from one of its correspondent banks at a price of $10,000,000 with the promise to sell those funds backs at a price of $10,000,500 ($10,000,000 + interest of $500) after 3 days. What is the yield on this repo?

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Finance Basics: What is the yield on the repo

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