Suppose that a 20-year 100 par value bond with a coupon rate of 8% is selling at par. also suppose that this bond is the deliverable for a futures contract that settles in six month. if the current three-month interest rate at which funds can be loaned or borrowed is 5% per year, what should be the profit of this futures contract, suppose the price of the futures contract is $105?

30.Calculate the accrued interest *

a.2

b.4

c.6

d.8n 1

31.Calculate the total profit from the settlement of the futures contract. *

a.$99

b.$109

c.$119

d.$129

 

32.Calculate the total profit or loss. *

a.4.5

b.5.5

c.6.5

d.7.5