1. An investor has $750,000 and wants to invest in the ZN Treasury Bond Futures contracts. The duration of the ZN is 7 years. Assume a Treasury Bond Futures price of 98.
2. If the investor puts all his money into the ZN contracts (not necessarily a good idea!), how many contracts can he go long (buy)?
3. How much notional value would he control?
4. Is this highly leveraged?
5. What is the margin requirement for "a"?
6. If the Interest fall rise 0.30%, what is his % and $ profit?
7. At what point does he get a Margin Call?
8. Is a Margin Call likely (probable) in one day?
9. What happens if he gets a margin call?

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ZN Margins: 2337 initial, 2125 maintenance 10-Year T-Note ZN CBOT/ZN 5:00p.m. - 4:00p.m. (Sun-Fri) (Settles 2:00p.m.) CST $100,000 Schedule D US Treasury Quotes US Treasury Quotes Link U.S. Treasurys SYMBOL YIELD One half of 1/32 of a point ($15.625 per contract) rounded up to the nearest cent per contract; par is on the basis of 100 points $2,337/2,125 $1,000 CHANGE 5.395 +0.004 US 1-MO US 2-MO US 3-MO 5.407 +0.012 5.398 -0.01 US 4-MO 5.437 +0.008 US 6-MO 5.421 +0.008 5.255 +0.015 US 1-YR US 2-YR 4.894 +0.052 US 3-YR 4.625 +0.034 US 5-YR 4.446 +0.019 4.473 +0.009 US 7-YR ZN Margins: 2337 initial, 2125 maintenance 10-Year T-Note ZN CBOT/ZN 5:00p.m. - 4:00p.m. (Sun-Fri) (Settles 2:00p.m.) CST $100,000 Schedule D US Treasury Quotes US Treasury Quotes Link U.S. Treasurys SYMBOL YIELD One half of 1/32 of a point ($15.625 per contract) rounded up to the nearest cent per contract; par is on the basis of 100 points $2,337/2,125 $1,000 CHANGE 5.395 +0.004 US 1-MO US 2-MO US 3-MO 5.407 +0.012 5.398 -0.01 US 4-MO 5.437 +0.008 US 6-MO 5.421 +0.008 5.255 +0.015 US 1-YR US 2-YR 4.894 +0.052 US 3-YR 4.625 +0.034 US 5-YR 4.446 +0.019 4.473 +0.009 US 7-YR