Question 1 (25 marks) Given the following information: Settlement date 13 August 2001 Treasury bond maturity date Treasury bond coupon rate Treasury bond quoted price 25/11/2010 6.25 percent, paid semiannually 110.20 Futures quoted price Futures expiry date 115.94 28/09/2001 Repo rate 4.9 percent Assume that the bond has a $100 million face value, and futures contract has a $1 million nominal amount. a) (10 marks) What is the implied repo rate? Interpret your finding. b) (3 marks) What is cash and carry arbitrage trade? Explain the process. c) (2 marks) Is there a cash-and-carry arbitrage based on the information above? d) (10 marks) What is the dollar amount of profit or loss