Question
1.The ____ of price change in the Treasury bond futures should be equal to that of the ____. A.Percentage / avg of all eligible bonds
1.The ____ of price change in the Treasury bond futures should be equal to that of the ____.
- A.Percentage / avg of all eligible bonds
- B.Dollar amount/CTD
- C.Dollar amount/ avg of all eligible bonds
- D.Percentage/ CTD
2.If you see a semiannual bond with 6% coupon to be matured in 1 year and 5 months with the first coupon to be received 5 months from now is having a negative yield, then the maximum price of this bond is:
- A.1090
- B.980
- C.1080
- D.1070
3.A $1,000 face value bond currently has a yield to maturity of 8.22 percent. The bond matures in five years and pays interest semiannually. The coupon rate is 7.5 percent. What is the current price of this bond?
- A.$970.96
- B.$989.60
- C.$1,005.26
- D.$1,010.13
- E.$948.01
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Options Futures and Other Derivatives
Authors: John C. Hull
10th edition
013447208X, 978-0134472089
