Currently, a 6-month T-bill yield is 7.12% and a 1-year STRIP yield is 8.41%. Further, you have strong reasons to believe that the 6-month spot rate in six months will be 4%.

Suppose that you can borrow up to $2,000,000 at the current market rates. All rates are on a semiannual bond equivalent basis.

How much profit will you expect to make if you use your whole line of credit and take advantage of an arbitrage opportunity (if any)?

Round your answer to 1 decimal place. For example, if your answer is 25.68, please write down 25.7.

Do it in excel if you can please