What is the implied interest rate on a Treasury bond ($100,000) futures contract that settled at 100-16?

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What is the implied interest rate on a Treasury bond ($100,000) futures contract that settled at 100-16? If interest rates increased by 1 percent, what would be the contract’s new value?

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Financial management theory and practice

ISBN: 978-0324422696

12th Edition

Authors: Eugene F. Brigham and Michael C. Ehrhardt

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Question Posted: Mar 18, 2010 01:54 AM

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What is the implied interest rate on a Treasury bond ($100,000) futures contract that settled at 100-16?

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Futures contract settled at 100 1632 of 100000 contract value so PV 1005 1000 1005 100 bo...View the full answer

Financial management theory and practice

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