Calculate the value of the bank bill futures contract

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Question - A company intends to borrow for three months approximately $1 million in money markets in three months time. The current interest rates are 3.40% and expected to rise. The company uses the futures markets to sell a bank bill future at 96.50. Calculate the value of the bank bill futures contract when the futures contract has a face value of $1,000,000. Why the yield is 100-96.5? What is yield definition?

Reference no: EM132189976

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