You borrow a Bono (nominal €50 million) in a securities borrowing deal from 16 June 2009 to 23 June 2009. You provide an OLO as collateral. There is a 1% haircut. The lending fee is 35 basis points.
|
Bono lent: |
5.45% of 21/3/2013 |
|
Price: |
98.73 |
|
OLO collateral: |
5.85% of 9/10/2029 |
|
Price: |
100.34 |
- What is the minimum face value of collateral required?
b. What is the amount of the lending fee?