Question
1.Which of the following statements regarding US Treasury futures is FALSE ? They use a conversion factor to determine the price of the delivered bond
1.Which of the following statements regarding US Treasury futures is FALSE?
They use a conversion factor to determine the price of the delivered bond as a ratio compared to a 6% coupon bond both evaluated at a 6% yield.
A bond that is cheapest to deliver bond can "trade special" in the repo markets.
They are cash settle.
They are often used to hedge portfolio duration.
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Money, Banking, Financial Markets & Institutions
Authors: Michael Brandl
2nd Edition
1337904821, 9781337904827
