An investor wants to invest $1000 cash for a period of 5 days. He has two
alternative choices:
a.either invest in a T-bill with a remaining maturity of 10 days
b.or roll over his cash using the overnight repo rate
1.knowing that the T-bill yields at 1.7% at the beginning of the investment
period and 1.64% at the end(on a discount basis), and that the overnight
repo rate has the following values over the investment period:
day 1: 1.8%
day 2: 1.74%
day 3: 1.7%
day 4: 1.65%
day 5: 1.67%
which of th
