On October $22$nd$,2018,$ Dealer A purchased $$1$ million face amount of a $7\mathrm{.}25\%,$ May

$15,2028,$ Government of Canada bond. Assume that October $22$nd is the settlement

date for the bond purchase and the day count convention is actual$/365$ days.

Dealer A wants to finance the trade through a repurchase agreement and will carry the

position for a term of $3$ days. The repo rate is $4\%.$ When the bond is returned to Dealer

$A,$ he sells it in the bond market. Given the market prices provided in the table below,

what is the profit or loss associated with the repo trade? Note: the profit will be the

difference between what Dealer A borrowed vs$.$ price sold in the market $3$ days later.

Assume a haircut of $0\mathrm{.}5\%$ on the repo. Show all your work.