Is futures price of a fixed rate bond likely to be higher

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Futures on bonds and stocks

(a) Is the futures price of a fixed rate bond likely to be higher, lower or the same as its forward price? Give brief reasoning.

(b) Is the futures price (for a futures contract with maturity T ₀) of a floating rate bond likely to be higher, lower or the same as its forward price? How does your answer change if T = T₀?

Reference no: EM131243641

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