1. Futures on bonds and stocks (a) Is the futures price of a fixed rate bond...
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1. Futures on bonds and stocks (a) Is the futures price of a fixed rate bond likely to be higher, lower, or the same as its forward price? Give brief reasoning. (b) Is the futures price (for a futures contract with maturity T 1. Futures on bonds and stocks (a) Is the futures price of a fixed rate bond likely to be higher, lower, or the same as its forward price? Give brief reasoning. (b) Is the futures price (for a futures contract with maturity T
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a The futures price of a fixedrate bond is likely to be lower than its forward price This is because ... View the full answer
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