You decide to invest in $6,750,000.00 of Repurchase Agreement due in 234 days and quoted at 9.875%. You finance the investment with a repo at 10.000% over the same period.

Your initial investment in the Repurchase Agreement is $___?___ on which you earn interest of $___?___

You pay interest of $___?___ thereby making a profit of $___?___

Was this a smart investment? (Yes/No)