Trying to understand this answer here, but having difficulty. Would appreciate it if someone formally, mathematically wrote down the precise definitions here.
What is a "financed position"?
"how much yield can increase before a financed position starts to lose money"
What does this mean? Yield of what, exactly? What yield is this is? Is this yield-to-maturity, current yield, etc? Can someone write this down mathematically?
In dollar terms, carry = (ending accrued interest – starting accrued interest) – (starting price + starting AI) x repo rate x year fraction
What is "starting"/"ending" accrued interest, "starting" price (is this the bond's clean price?).