P15.3 Mark Seby is thinking about doing some speculating in interest rates. He thinks rates will fall

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P15.3 Mark Seby is thinking about doing some speculating in interest rates. He thinks rates will fall and, in response, the price of three-year Treasury bond futures should move from 94.89, their present quote, to a level of about 96. Given a required margin deposit of $955 per contract, what would Mark’s return on invested capital be if prices behave as he expects?

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Fundamentals Of Investing

ISBN: 9781442532885

3rd Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Scott Smart, Roger Juchau, Donald Ross, Sue Wright

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