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The December CBOT Treasury bond futures contract has a quoted price of 105'09. What is the implied annual interest rate inherent in this futures contract?N:

The December CBOT Treasury bond futures contract has a quoted price of 105'09. What is the implied annual interest rate inherent in this futures contract?N: 40; PV = (1.05 + .09/32) $1,000 = $1,050.03; FV = $1,000 PMT = $30 I/YR = 2.79% Annual rate: I/YR 2 = 5.58%

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