Question: George Seby is thinking about doing some speculating in interest rates. He thinks rates will fall and, in response, the price of Treasury bond futures

George Seby is thinking about doing some speculating in interest rates. He thinks rates will fall and, in response, the price of Treasury bond futures should move from 89-15.3, their present quote, to a level of about 93. Given a required margin deposit of $1,030 per contract, what would George's return on invested capital be if prices behave as he expects?

1. If prices behave as he expects, George's return on invested capital will be ___%.

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