Question: A U . S . Treasury bond with a 2 0 year maturity is deliverable for a futures contract that settles in 6 months. The

A U.S. Treasury bond with a 20 year maturity is deliverable for a futures contract that settles in 6 months.
The coupon rate on the bond is 5% and the bond is selling at par ( $100). The price of the futures contract
is $98 and the borrowing/lending rate is 3%. Answer part a and no chat gpt
a. Specify the cash flows from a synthetic futures contract that allows you to earn arbitrage profits if you sell or are short the futures contract
Specify your arbitrage profits.
A U.S. Treasury bond with a 20 year maturity is deliverable

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