On 1st September 2008, Copula, a mutual fund, approaches a trading desk to sell $100million face value of a 90-day T-bill currently trading at a discount rate of 5.1%. To obtain the funds needed, the trading desk repos out the T-bill to MSFT who has an enormous amount of cash to lend in the repo market. Specificly, the trading desk enters into a 14-day repo with a repo rate of 4.74% p.a. Note that in the repo markets, we use the convention of 360 calendar days in a year.

1]How much (in millions) does MSFT lend to the trading desk?

2}If MSFT imposes a haircut of 3%, how much (in millions) will they lend to the trading desk?