Value of six-month futures contract on treasury bond

Assignment Help Financial Management
Reference no: EM131353488

Calculate the value of a six-month futures contract on a Treasury bond. You have the following information: (Do not round intermediate calculations. Round your answer to 3 decimal places.)

Six-month interest rate: 8% per year

Spot price of bond: 90.25.

Bond coupon: 6%, paid as 4% every six months.

Contract value ?

Reference no: EM131353488

Questions Cloud

Firm has an operating cycle-average collection period : A firm has an operating cycle of 120 days, an average collection period of 40 days, and an average payment period of 30 days. The firm's average age of inventory is ________ days. How to calculate all of them, please steps of calculation.
Calculate the number of grams of calcium carbonate : Calculate the number of grams of calcium carbonate in the following solutions--you must show all work in detail to receive credit: (a) 25.0 mL of 0.997 M CaCO3, (b) 10.0 mL of 2.50 M CaCO3, (c) 525.0 mL of 0.501 M CaCO3, (d) 1.25 L of 3.42 M CaCO3
Calculate the total pressure : Using both the ideal gas law and Dalton's law of partial pressures, calculate the total pressure of a 1.00 L container at 25 degrees C that contains 32.0 g O2 and 14.0 g N2 (the 2's here are subscripts). You must show all work to receive credit.
Difference between a static and a final static variable : Difference between a static and a final static variable in Java? Unable to differentiate between a final and a final static member.
Value of six-month futures contract on treasury bond : Calculate the value of a six-month futures contract on a Treasury bond.
Realities of the underlying science : Please do a bit of research on how dietary recommendations around fat and cholesterol have changed in the past 30-40 year. Can you explain how such a swing has happened? Is it related to the realities of the underlying science? How?
Explain the intergration-respnsoveness framework : Explain the intergration-respnsoveness framework. how can managers reconcile intergration and responsiveness in the MNE? What is capital planning? How do you select from multiple projects presented to your organization? How do you define working capi..
Estimate of highgrowth cost of equity capital : HighGrowth Company has a stock price of $20.The firm will pay a dividend next year of $1.17, and its dividend is expected to grow at a rate of 3.7% per year thereafter. What is your estimate of HighGrowth's cost of equity capital?
How would you create an inclusive environment for this child : If you were a teacher in this child's preschool classroom, how would you create an inclusive environment for this child in your mixed age (3-5 year olds) class? Share two examples.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the annual after-tax operating cash flow for years

FITCO Inc. is the manufacturer of exercise machines and is considering producing a new line of equipment in an effort to increase its market share. The new production line will cost $1,450,000 for manufacturing the parts and an additional $130,000 is..

  What is the firms cost of capital

The DTF company is planning a 64 million expansion. The expansion is to be finance by selling 25.6 million and New date and 38.4 million and new common stock. The before required right of return Undead as 9 percent and the required right of return on..

  Balance sheet information-how much long-term debt

Tim Dye, the CFO of Blackwell Automotive, Inc., is putting together this year's financial statements. He has gathered the following balance sheet information: The firm had a cash balance of $23,015, accounts payable of $163,257, common stock of $314,..

  Which sentence is a sub-conclusion

Consider the following argument and say which sentence is a sub-conclusion (both a premise and a conclusion). There is substantial evidence that Abner Doubleday did not invent baseball. He made no mention of it in his many letters and papers. He cert..

  An average score near the center of the distribution

If the distribution had a standard deviation of 4, would a score of 82 be considered an extreme value or an average score near the center of the distribution?

  Net income and cash flow from operations

Using the following information below, prepare cash flow statement using the table below. Determine the following: net income, cash flow from operations, cash flow from investment activites cash flow from financing activities, increase in cash and en..

  What are the fixed costs of hamburger production

In a slow year, Deutsche Burgers will produce 3.5 million hamburgers at a total cost of $4.6 million. In a good year, it can produce 4.3 million hamburgers at a total cost of $4.9 million. What are the fixed costs of hamburger production? What is the..

  Cost of equity capital under the proposed restructuring

Ngala Ltd. currently has no debt in their capital structure. They are considering recapitalizing the firm and adding about 25% debt. The loan requires an interest rate of 7%. The firm is in the 35% tax bracket. Currently, the firm has a beta of 1.02...

  What is the real interest rate

Write down the relationship between nominal rates of return (rnominal), real rates of return (rreal), and the inflation rate (π).

  Bonds make annual payments-what is the current bond price

Bey Co. issued 20-year, $1,000 bonds at a coupon rate of 7 percent. The bonds make annual payments. If the YTM on these bonds is 5 percent, what is the current bond price?

  Explain the core principles of corporate finance

Explain the core principles of corporate finance. In particular, what is the goal of corporate finance, and what are the major decisions?

  About the cost of common equity

Cost of Common Equity Pearson Motors has a target capital structure of 35% debt and 65% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 11%, and its tax rate is 40%. Pearson's CFO estimates that the..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd