Thinking about doing some speculating in interest rates

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George Seby is thinking about doing some speculating in interest rates. He thinks rates will fall and, in response, the price of Treasury bond futures should move from 97-0], their present quote, to a level of about 105. Given a required margin deposit of$1.160 per contract. what would George's return on invested capital be if prices behave as he expects? If prices behave as he expects, George's return on invested capital will be %. (Round to two decimal places.)

Reference no: EM133119865

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