Nov 2016 Q4 c.

i) Distinguish between repurchase agreement (repos) and reverse repos.                                                                        (3 marks)

ii) A company enters into an agreement with a bank and it sells GH¢10million government bonds with an obligation to buy back the security in 60 days. If the rate is 8.2% what is the repurchase price of the bond? Assume 365 days in a year.           (3 marks)