Implied annual interest rate inherent in futures contract

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Reference no: EM131850137

1. Which statement is CORRECT?

a) Short term bonds tend to have the most interest rate risk

b) Callable bonds give the bondholder the right to exchange their bond for stock in the corporation prior to maturity

c) Bonds with a sinking fund tend to have higher interest rates

d) None of the above are correct

2. The December CBOT Treasury bond futures contract has a quoted price of 95'09. What is the implied annual interest rate inherent in this futures contract?

2.35%

3.21%

6.42%

6.65%

None of the above

Reference no: EM131850137

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