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The futures rate on a futures Tbill contract with delivery date 30 days from now is 6%. A 120-day Tbill has the rate 8%

Posted: Fri Jul 01, 2022 7:47 am
by answerhappygod
The futures rate on a futures Tbill contract with delivery date30 days from now is 6%. A 120-day Tbill has the rate8%. The implied repo rate is closest to (a) 5%; (b) 10%; (c)12%. Why is this called an “implied” reporate?