A certain investor has approached you wishing to set up a repurchase agreement for $15,000,000 for 25 days. You have agreed to do so but will require collateral of $17,200,000 in U.S. Treasury bills with a repro rate of 2.12% to structure the deal.

1. What is the size (%) of the haircut in this deal?

2. How much will you receive ($) from the investor when the Repo is settled in 15 days?

Show all work. Carry all calculations out to four (4) decimal places (except dollars and cents). Highlight in bold your answer.