Please show all work and explain. Answers are given.

You purchase a Repo with a par value of $$250,000,000$ and one day to maturity. The quoted rate on

the Repo is $0\mathrm{.}72\%.$

a$.$ How much in implied interest is paid on the Repo? $$4,999\mathrm{.}90$

b$.$ There is another Repo with nine days to maturity and a quoted rate of $0\mathrm{.}75\%.$ What price

would you pay for the Repo, and what is the value of the implied interest?

$$249,953,133\mathrm{.}80$; $$46,866\mathrm{.}20$

c$.$ What is the EAR on the one$-$day Repo? On the nine$-$day Repo? $0\mathrm{.}73\%$; $0\mathrm{.}76\%$

$11.$ Consider a $30-$day T$-$Bill with a quoted rate of $0\mathrm{.}12\%.$

a$.$ What price would you pay for $$50,000,000$ in par value of the T$-$Bill? $$49,995,000$

b$.$ What is the EAR on the T$-$Bill? $0\mathrm{.}1217\%$

c$.$ Suppose instead that the quoted rate on the $30-$day T$-$Bill is $5\mathrm{.}50\%.$ What price would you

pay for $$50,000,000$ in par value and what is the EAR? $$49,770,833\mathrm{.}33$; $5\mathrm{.}75\%$

d$.$ Finally, suppose the quoted rate on the $30-$day T$-$Bill is $15\mathrm{.}50\%.$ What price would you pay

for $$50,000,000$ in par value and what is the EAR? $$49,354,166\mathrm{.}67$; $17\mathrm{.}14\%$