16.Julie Wells has found a Treasury Bond future contract whose underlying's duration is 8.5 years and is currently selling for $97,500. Interest rates are currently 8% and are expected to rise by 1.5%. What is the expected change in the future contract's price for this change in interest rates?

A. $1,462. 50

B. $12,431. 25

C. - $11,510.4 2

D. - $1,462.5 0

E. - $12,431.2 5

17. An investor purchases one September T-bond futures contract at 115-110. The settlement price for the contract on next day is 117-225. What is the marked-to-market gain/loss for the investor?

A. $2,359. 38

B. - $2,539.3 8

C. $2.3 6

D. - $2,115

E. $2.11 5

18. The coupon rate promised to investors on securities issued against a pool of loans is 6.5%. The default rate on the pool of loans is expected to be 3.5%. The fee to compensate a servicing institution for collecting payments on the loan is 2%. Fees to set up credit and liquidity enhancements are 5%. The residual income on this pool of loans is 7%. What is the expected yield on this pool of loans?

A. 24 %

B. 12 %

C. 10 %

D. 6.5 %

E. None of the options is correct