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In June, the Carey Money Market Fund forecasted a September cash inflow of $15 million that it plans to invest for 92 days in T-bills.
In June, the Carey Money Market Fund forecasted a September cash inflow of $15 million that it plans to invest for 92 days in T-bills. The fund is uncertain about future short-term interest rates and would like to lock in the rate on the September investment with T-bill futures contracts. Currently, September T-bill contracts are trading at 93 (IMM index). How many September contracts does Carey need to lock in the implied futures YTM (assume perfect divisibility)? Group of answer choices [A] 8.56 [B] 10.88 [C] 15.27 [D] 17.66
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