Thinking about doing some speculating in interest rates

Assignment Help Finance Basics
Reference no: EM133119865

George Seby is thinking about doing some speculating in interest rates. He thinks rates will fall and, in response, the price of Treasury bond futures should move from 97-0], their present quote, to a level of about 105. Given a required margin deposit of$1.160 per contract. what would George's return on invested capital be if prices behave as he expects? If prices behave as he expects, George's return on invested capital will be %. (Round to two decimal places.)

Reference no: EM133119865

Questions Cloud

What is the delivery price of forward contract : Today's spot price is $92, and the continuously compounded interest rate is 10% per annum. What is the delivery price of your forward contract?
Creating a financial plan : The Cooper's currently live in a 3 bedroom townhouse in North West Calgary that they rent for $2,500 per month.
What will the monthly payments be for car : You would like to purchase a car for $14,955. If the car loan is 08.00% financed over 7 years, what will the monthly payments be for this car?
State an introduction of the case : Overview of some aspect of the reading - A summary or a general discussion of key points and the readings highlights - Summarise your findings, consolidating
Thinking about doing some speculating in interest rates : George Seby is thinking about doing some speculating in interest rates. He thinks rates will fall and, in response, the price of Treasury bond futures should mo
Four steps in risk management : Risk identification, is the careful and systematic discovery of all risks that confront a household or an organization.
Share trading experience or ideas : Please share your trading experience or ideas. Please feel free to post any questions that you have on the foreign currency trading. Please be concise and detai
Explain the stock structure of the tesla corporation : Using the annual financial statements and other research, explain the stock structure of the Tesla Corporation. What elements comprise their capital structure?
Financial investment in the corporation : The responsibility of the directors of a corporation is to provide a return to shareholders on their financial investment in the corporation

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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