Calculate the value of a six-month futures contract on a Treasury bond. You have the following...
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Calculate the value of a six-month futures contract on a Treasury bond. You have the following information: (Do not round intermediate calculations. Round your answer to 3 decimal places.) Six-month interest rate: 9% per year, or 4.40% for six months. • Spot price of bond: 90.50. • The bond pays a 7% coupon, 3.50% every six months. Calculate the value of a six-month futures contract on a Treasury bond. You have the following information: (Do not round intermediate calculations. Round your answer to 3 decimal places.) Six-month interest rate: 9% per year, or 4.40% for six months. • Spot price of bond: 90.50. • The bond pays a 7% coupon, 3.50% every six months.
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Answer rating: 100% (QA)
To calculate the futures price of the Treasury bond we can use the following formul... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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