Hello, I have an inquiry about the fm test index at opentuition.com
FM Chapter 25 Questions – The treasury function
Which two of the following monry market instruments carry interest?
I have selected repurchase agreement and its not correct
But in bpp text book, the repo is regard as interest bearing instruments provide the that the higher price of seller buying back is part of the interest element,
So which one is the correct one? A bit confusing
Thank you.
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FM Chapter 25 Questions – The treasury function
7y ago#1They are both correct.
Not all repo's carry interest - as the text book says, they are only regarded as carrying interest provided....etc etc
Our test question does not specify conditions
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