Calculate implied annual interest rate on futures contract

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A Treasury bond futures contract settles at 105'8.

What is the present value of the futures contract in dollars?

Calculate the implied annual interest rate on the futures contract?

Calculate the new value of the futures contract if interest rates increase by 1 percentage point annually.

Calculate your profit or loss if you sold a futures contract at 105-8 and purchased an offsetting contract when rates increased by 1 percentage point annually.

Reference no: EM13804331

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