Define futures contracts in finance

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Reference no: EM131944517

1. Sack Corporation’s bonds have a 15-year maturity, a 6% semiannual coupon, and a part value of $1,000. The going interest rate is 5%, what is the bond’s current yield? Show work.

2. Define futures contracts in finance. Why do we need them? Give an example from Commodity, Currency and Financial futures. Also, name one index futures from each category.

Reference no: EM131944517

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