Question
An 8-year $1,000 par bond pays a 7% semi-annual coupon. This bond is one of many deliverable bonds and has a conversion factor of 1.025.
An 8-year $1,000 par bond pays a 7% semi-annual coupon. This bond is one of many deliverable bonds and has a conversion factor of 1.025. The risk-free is 6.0% and the annual yield on the bond is 7.0%. The price of a 15-month futures contract on this bond is $:
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Integral Green Zimbabwe An African Phoenix Rising
Authors: Elizabeth Mamukwa , Ronnie Lessem , Alexander Schieffer
1st Edition
1472438191, 1472438205, 9781472438201
