Explanation:
Repurchase Price = Principal (1 + (Repo Rate × ))
Repurchase Price = $250 (1 + (0.34% \times \frac{183}{360})) = `
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Q.4119 Prime Bank sells DBR 4s of face value $200 million of September 1<sup>st</sup>, 2040, to a counterparty for settlement for 250 million. Prime Bank then decides to buy the $200 million face amount after 183 days for settlement at a buying price equal to that of the invoice price with a repo rate of 0.34%. At what price can Prime Bank repurchase the bond?
A
$250.43 million
B
$250.57 million
C
$200.68 million
D
$200.97 million