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 the two strageties is more profitable?

2. which is the interest -rate risj un each strategy?