a How should the parity condition (equation 20 2) for stocks be modified for futures contracts on Treasury bonds What should play the role of the dividend yield in that equation b In an environment with an upward sloping yield curve, should T bond futures prices on more distant contracts be higher ...

a The current yield for Treasury bonds coupon divided b ...

a. How should the parity condition (equation 20.2) for stocks be modified for futures contracts on Treasury

Question:

a. How should the parity condition (equation 20.2) for be modified for futures contracts on Treasury bonds? What should play the role of the yield in that equation?
b. In an environment with an upward- sloping yield curve, should T- bond futures prices on more-distant contracts be higher or lower than those on near- term contracts?
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...