If you buy a nine-month T-bill future, you undertake to buy a three-month bill in nine months?

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If you buy a nine-month T-bill future, you undertake to buy a three-month bill in nine months? time. Suppose that Treasury bills and notes currently offer the following yields:

What is the value of a nine-month bill future?

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 09, 2011 06:16 AM

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If you buy a nine-month T-bill future, you undertake to buy a three-month bill in nine months?

Question:

Months to Maturity Annual Yield 3 6% 6.5 7 12 8

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If we purchase a 9month Treasury bill futures contract today we are agreeing to spend a ...View the full answer

Principles of Corporate Finance

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