Week 5 Homework FIN 540
Question # 00000346
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Updated on: 08/07/2013 03:17 PM Due on: 08/09/2013
5. Suppose the December CBOT Treasury bond futures contract has a quoted price of 80-07. If annual interest rates go up by 1.00 percentage point, what is the gain or loss on the futures contract? (Assume a $1,000 par value, and round to the nearest whole dollar.)
a. -$78.00
b. -$82.00
c. -$86.00
d. -$90.00
e. -$95.00
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