Repurchase Agreement(REPO)

—Assume the following information about two banks.

Bank A: has bond with face of $100 million, market value of 99,738,874 million

—Bank B: has cash to lend

—Term of loan: 32 days

—Repo rate (set by market): 1.67% (stated annually)

Haircut required by Bank B: 2.83%

Bank A and Bank B agree to engage in a repurchase agreement in which Bank A sells the bond to Bank B and agrees to later repurchase it.

The amount of money that Bank B is willing to be repaid for the bond when Bank A repurchases it when the agreement expires is:  $____________ (rounded to nearest dollar).

Can someone please answer this?