How the portfolio manager use treasury bond futures contract

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Reference no: EM131279802

1. Explain whether you agree or disagree with the following statement:
One difference between a futures and forward contract is that futures contracts are marked to market and forward contracts are not.

2. If the target duration for a portfolio is greater than the current portfolio duration, how can the portfolio manager use:

a. Treasury bond futures contracts to alter the portfolio's duration so as to bring it in line with the target duration?

b. Interest rate swaps to increase the portfolio's duration so as to bring it in line with the target duration?

Reference no: EM131279802

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