S the present value of the futures contract in dollars

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Reference no: EM13153847

A Treasury bond futures contract settles at 105'8.
a. What is the present value of the futures contract in dollars?
b. If the contract settles at 105-8, are current market interest rates higher or lower than the standardized rate on a futures contract? Explain.
c. Calculate the implied annual interest rate on the futures contract?
d. Calculate the new value of the futures contract if interest rates increase by 1 percentage point annually.

Reference no: EM13153847

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S the present value of the futures contract in dollars : Treasury bond futures contract settles at 105'8. a. What is the present value of the futures contract in dollars? b. If the contract settles at 105-8, are current market interest rates higher or lower than the standardized rate on a futures contract..

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