Calculate the value of a six-month futures contract on a Treasury bond. You have the following information:

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• Six-month interest rate: 10% per year, or 4.9% for six months.

• Spot price of bond: 95.

• The bond pays an 8% coupon, 4% every six months.

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Principles of Corporate Finance

ISBN: 978-0077404895

10th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen

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Question Posted: Dec 31, 2012 10:49 AM

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Calculate the value of a six-month futures contract on a Treasury bond. You have the following information:

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Price of bond 95 Sixmont...View the full answer

Principles of Corporate Finance

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