13. Futures prices (S27-4) The following table shows 2021 gold futures prices for varying contract lengths. Gold is predominantly an investment good, not an industrial commodity.

792 Part Nine Risk Management Investors hold gold because it diversifies their portfolios and because they hope its price will rise. They do not hold it for its convenience yield.

Contract Length (months)

3 6 9 Futures price $1,796.2 $1,809.6 $1,827.4 Calculate the interest rates faced by traders in gold futures, assuming a zero net convenience yield, for each of the contract lengths shown above. The spot price is $1,787.3 per ounce.