Calculate the quoted futures price for the contract.

Assignment Help Financial Management
Reference no: EM131982658

It is February 27, 2018. The cheapest-to-deliver bond in a De-cember 2018 Treasury bond futures contract is an 8% coupon bond with a con-version factor of 1.2195, and delivery is expected to be made on December 31,2018. Coupons on the bond are paid on March 1 and September 1 each year. Theterm structure is flat, and the rate of interest with continuous compounding is 5% per annum. The current quoted bond price is $137. Calculate the quoted futures price for the contract.

Reference no: EM131982658

Questions Cloud

What is present value if the first payment comes immediately : what is the present value of the winnings? What is the present value if the first payment comes immediately?
Long or short the eurodollar futures contract : What rate can then company lock in by using the Eurodollar futures contract? Long or short the Eurodollar futures contract?
Calculate present value of the payments for option : Calculate the present value of the payments for option (a) if the interest rate is .75% per month.
What is equal payment at the end of each of four years : What is the equal payment at the end of each of the 4 years? SHOW ALL WORK using the time value of money buttons on the TI BAII Plus Calculator for full credit.
Calculate the quoted futures price for the contract. : The current quoted bond price is $137. Calculate the quoted futures price for the contract.
Treasury bond futures contract had quoted price : Two months ago, a June Treasury bond futures contract had a quoted price of 98'12. Now, the quote price is 97'6. Market interest rates have
How much must you save each year to meet retirement goal : If the interest rate is 7% per year, how much must you save each year to meet your retirement goal?
Calculate the present value of your payments : Calculate the present value of your payments to the bank if the interest rate is 4.75%
Describe few examples of your learning : Describe a few examples of your learning, What’s the applicable and generalization lesson.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd