The price of $100 par-value T-bond maturing in 15 years and paying a 7% coupon is 130.

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The price of $100 par-value T-bond maturing in 15 years and paying a 7% coupon is 130. The bonds future contract is settling in one month and is priced at 135. The one-month CD rate is 1%. What is a theory theoretical futures price?

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Financial Management Principles and Applications

ISBN: 978-0133423822

12th edition

Authors: Sheridan Titman, Arthur Keown, John Martin

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Posted Date: May 06, 2022 04:20 AM

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The price of $100 par-value T-bond maturing in 15 years and paying a 7% coupon is 130.

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Financial Management Principles and Applications

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