Example $1$

You are entering into a $20-$day repo to repo out a T$-$note currently selling

for $$100$ million at a repo rate of $5\%.$ Assume that there is a haircut of $5\%.$

a$)$ Are you trying to lend or borrow money?

b$)$ How much will you pay or receive from your counter$-$party $20$ days

from now?