3. Suppose the September CBOT Treasury bond futures contract has a quoted price of 89-09. What is the implied annual interest rate inherent in this futures contract? a. 6.32% b. 6.65% c. 7.00% d. 7.35% e. 7.72%
3. Suppose the September CBOT Treasury bond futures contract has a quoted price of 89-09. What is the implied annual interest rate inherent in this futures contract? a. 6.32% b. 6.65% c. 7.00% d. 7.35% e. 7.72%
Related questions
A more accurate measure of the change in bond price due to changes in yield to maturity can be found using both modified duration and __________.
| A. Macaulay duration |
| B. conversion premium |
| C. time to maturity |
| D. convexity |
One CBOT corn futures contract trades in units of 5,000 bushels and the minimum initial margin is $2,500 per contract. On July 17, 2013, the Sep '13 CBOT corn futures contract settled at $6.50 per bushel. Calculate the amount of leverage inherent in the futures contract using the minimum initial margin.
| A.14 |
| B. 15 |
| C. 12 |
| D. 13 |
Holding all else equal, an unexpected fall in interest rates will cause the value of a given outstanding call option to __________.
| A. decrease |
| B. remain constant |
| C. increase |
| D. none of the above |
