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NEW QUESTION: 2
Click on the Exhibit Button to view the Formula Sheet. The tom/next GC repo rate for German government bonds is quoted to you at 1.75-80%. As collateral, you sell EUR10 million nominal of the 5.25% bund July 2012, which is worth EUR 11,260,000, with no initial margin. The Repurchase Price is:
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B. EUR 11,260,547.36
C. EUR 10,000,486.11
D. EUR 11,260,563.00
Answer: D
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