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You are a bond dealer who is borrowing money (=lending a bond) via reverse repo, starting from Thursday Oct 28, 2021 for a term of
You are a bond dealer who is borrowing money (=lending a bond) via reverse repo, starting from Thursday Oct 28, 2021 for a term of one business day (i.e. until Fri Oct 29, 2021). The face value of the bond is $10M, the dirty price is 104% of face, the haircut is 2%. Since the bond is "special",the repo rate is actually negative, in this case -5%. How much will you pay back on Oct 29, 2021? (nearest $0.01). (M = millions)
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