What would be the contracts new value

Assignment Help Finance Basics
Reference no: EM13287235

What is the implied interest rate on a Treasury bond ($100,000) futures contract that settled at 100'16? If interest rates increased by 1%, what would be the contracts new value? Answer according to book is Rd= 5.96% but I dont know how they arrived at that answer.

Reference no: EM13287235

Questions Cloud

Example of a nursing intervention related : Propose one example of a nursing intervention related to the disaster from each of the following levels: primary prevention, secondary prevention, and tertiary prevention. Provide innovative examples that have not been discussed by a previous student..
What is the acceleration of the basketball : A basketball player is standing on the floor 10.0 m from the basket, What is the acceleration of the basketball at the highest point in its trajectory
How much does the brains mass increase in one day : The mass of a newborn baby's brain has been found to increase by about 1.6 mg per minute. How much does the brain's mass increase in one day
Explain the production of fluorine-containing compounds : Carbonyl fluoride, , is an important intermediate used in the production of fluorine-containing compounds. For instance, it is used to make the refrigerant carbon tetrafluoride
What would be the contracts new value : What is the implied interest rate on a Treasury bond ($100,000) futures contract that settled at 100'16? If interest rates increased by 1%, what would be the contracts new value? Answer according to book is Rd= 5.96% but I dont know how they arriv..
Definition of marketing using-facilitate the exchange : Be able to provide your own definition of marketing using: "Facilitate the exchange" along with "creating, communicating, delivering, value" also include "the offering", and "society at large".
The effectiveness of their pay-for-performance plans : 1. How could an organization measure the effectiveness of their pay-for-performance plans?
What is the implied annual yield : A Treasury bond futures contract has a settlement price of 89'08. What is the implied annual yield? According to the text book the answer is Rd= 7.01% but I dont know how they arrived at that answer.
Consider a class called contact to use in a mobile phone : Consider a class called Contact to use in a mobile phone contact list. Draw a UML diagram for this class with three attributes of your choosing and accessor and mutator methods for each attribute. (use | and --- for the boxes)

Reviews

Write a Review

Finance Basics Questions & Answers

  Making investment decision

You are about to sign up two new clients, a husband and wife, ages 60 and 57, respectively who are recently retired. All their assets are held jointly.

  Explain the fact that their roe is about 12 percent

It is widely known that grocery chains have low profit margins-on average, they earn about 1 percent on sales. How would you explain the fact that their ROE is about 12 percent? Does this seem logical?

  Comparison of two banks

Select two banks and comparison shop for the best deal on a new personal checking account.

  Describe a zero-duration hedging strategy

Describe a zero-duration hedging strategy using only the government bond portfolio and options on U.S. Treasury

  Debt financing-key informaiton

What benefit is it to a firm to buy back some of its common stock, increase use of internal financing instead of external financing

  How is market risk measured for individual securities

How is market risk measured for individual securities AND how is it calculated?

  What is the firms avg collection period

suppose that the firm's cost of carrying receivables was 8% annually. how much would the toughened credit policy save the firm in annual receivables carrying expense?(assume that the entire amount of receivables had to be financed)

  What is the quantitative measure of a projects risk

What is the quantitative measure of a project's risk? What is it called? How is this related to the line in Exhibit 4.6? And what is this line called?

  The bank compounds interest

Assume that 1 year from now; you will deposit $1,000 into a savings account that  pays 8%. a. If the Bank compounds interest annually, how much will you have in your account 4 years from now?

  What is the tax equivalent yield

What is the tax equivalent yield of a 10 year general obligation bond issued by the City of Burlington with a coupon of 4.5% if the assumed marginal tax rate is 40%?

  Calculate the present values of investment using future

Calculate the present values of investment using future values investments returns

  Calculate total marketable and nonmarketable debt

Assume the public debt of the United States consisted of following types of security issues [all figures in billions of dollars]: Calculate total marketable and nonmarketable debt

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