Week 5 Homework FIN 540
Subject: Economics / Financial Markets
Question
5. Suppose the December CBOT Treasury bond futures contract has a quoted price of 80-07. If annual interest rates go up by 1.00 percentage point, what is the gain or loss on the futures contract? (Assume a $1,000 par value, and round to the nearest whole dollar.) a. -$78.00 b. -$82.00 c. -$86.00 d. -$90.00 e. -$95.00
