A Treasury bond futures contract has a settlement price of 89?08. What is the implied annual yield? Explain how various types of derivatives, such as futures contracts, can be used as a risk management tool.

Unit 6 Problem Submission Template: CHAPTER 17: Problem 5 Given Data: Price of Francs today = Appreciation $0.60 1.10 10% Price of Franc tomorrow = # of Francs a Dollar would buy tomorrow Include an explanation of factors that can affect the appreciation or depreciation of currency. CHAPTER 23: Problem 2 Settlement Maturity Rate Pr Redemption Frequency Basis: (Coupon Yield to use is given on p. 917 in the text) Yield to Maturity: Include an explanation of how various types of derivatives, such as futures contracts, can be used as a risk management tool