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Suppose the March CBT Treasury bond futures contract has a quoted price of 88-30. If annual interest rates go down by 3.75 percentage point, what
Suppose the March CBT Treasury bond futures contract has a quoted price of 88-30. If annual interest rates go down by 3.75 percentage point, what is the gain or loss on the futures contract? (Assume a $1,000 par value, round the new interest rate to 4 decimal places when written as a decimal, and round the change in price up to the nearest whole dollar.) Answer a.$429.00 b.$304.00 c.$405.00 d.$474.00 e.$413.00
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