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Suppose that you purchase t-bills from an auction. T-bills have 182 days of maturity, 500 TL of par value, and 12% of annual interest rate.
Suppose that you purchase t-bills from an auction. T-bills have 182 days of maturity, 500 TL of par value, and 12% of annual interest rate. As soon as you purchase them, you enter into a repo transaction with a counterparty. The repo transaction has a maturity of 10 days and an annual interest rate of 15%. At the end of the maturity of the repo transaction, what would be your net profit/loss from the t-bill and repo transactions?
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