Explain the term structure is flat and the rate of interest

Assignment Help Business Management

Reference no: EM1368379

It is March 10, 2011. The cheapest-to-deliver bond in a December 2010 Treasury bond futures contract is an 8% coupon bond, and delivery is expected to be made on December 31, 2011. Coupon payments on the bond are made on March 1 and September 1 each year. The term structure is flat, and the rate of interest with continuous compounding is 5% per annum. The conversion factor for the bond is 1.2191. The current quoted bond price is $137. Calculate the quoted futures price for the contract.

Reference no: EM1368379

Questions Cloud

Human resources: labor relation : Write a paper on Human Resources: Labor Relation- 10 Pages, Analyze the importance of labor relations for human resource managers

Expanding economy, inflation and households borrowing : Is it possible for the gross federal debt to rise in dollar terms but decline as a percentage of GDP? Explain your answer.

Write function template that accepts array : Write a function template arraySum () whihc accepts an array and number of values stored in it and returns sum of those values.

Training & development : Write a paper on Human Resources: Training & Development (one copy) - total 10 Pages, Describe how training contributes to the success of the organization.

Explain the term structure is flat and the rate of interest : Explain The term structure is flat and the rate of interest with continuous compounding is 5% per annum and The conversion factor for the bond is 1.2191 and The current quoted bond price is $137.

Write algorithm for graph minimum number of semesters : You are given a DAG called G which is the prerequisite graph for a set of courses required for a degree. Each vertex corresponds to course. Provide a high-level description of algorithm which labels each vertex in G with minimum number of semesters..

Calculate the probability of success or failure : Mark Martinko has been a class A racquetball payer for the last 5-years, and one of his biggest goals is to own and operate a racquetball facility.

Create a database design - relational data model : Create a database design specification Enhanced Entity Relationship Diagram (EERD) and Relational Data Model from the given business description - Database Management System

Calculate the point price elasticity of demand : In effort to decrease excess end of the model year inventory, Oaktown Ford offered a 1 percent discount off the average price of 4WD Escape gas-electric hybrid SUV's sold during the month of August.

User Account

All Pages