Question
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
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 *
2 points
a.2
b.4
c.6
d.8n 1
31.Calculate the total profit from the settlement of the futures contract. *
2 points
a.$99
b.$109
c.$119
d.$129
32.Calculate the total profit or loss. *
2 points
a.4.5
b.5.5
c.6.5
d.7.5
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