On January 1, the listed spot and futures prices of a Treasury bond were 93.8 and 93.13.

Question:

On January 1, the listed spot and futures prices of a Treasury bond were 93.8 and 93.13. You purchased $100,000 Treasury bonds and sold one Treasury bond futures contract, also $100,000 face value. One month later, the listed spot price and futures prices were 94 and 94.09, respectively. Determine the change in the value of your combined position.
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...