What will happen to the price of the t bill future

Assignment Help Financial Management
Reference no: EM131210242

If I buy a T-bill future for $950,000 and interest rates go up between now and the delivery date, what will happen to the price of the T-bill future?

Will I make money or lose money? Explain.

Reference no: EM131210242

Questions Cloud

Treasury bond call option with a strike price : An investment firm buys a December $100,000 Treasury bond call option with a strike price of 105. - If the spot price in December is $108,000, is the option exercised?
Do you think the accountable care organizations : Do you think the Accountable Care Organizations (ACOs) concept has traction or is it just another fad in the continual pursuit of slowing the growth of health care expenditures? In what ways does an ACO increase/decrease overall health care costs?
Write a short reflection essay about the term oriental : Write a short reflection essay (4-5 paragraphs; 1-2 pages) about the term "Oriental." What does it mean? Should people stop using this word? Why or why not?
Does the brokerage house make a profit : A brokerage house purchases an S&P 500 futures agreement for $300,000. On the delivery date, the S&P 500 Index is 575. - Does the brokerage house make a profit?
What will happen to the price of the t bill future : If I buy a T-bill future for $950,000 and interest rates go up between now and the delivery date, what will happen to the price of the T-bill future?
Derive the logic expressions for the output : Finite state machines can be used to detect the occurrence of certain subsequences in the sequence of binary inputs applied to the machine. Such machines are called finite state recognizers. Suppose that a machine is to produce a 1 as its output w..
Because of this high degree of connectedness : With so many ways to stay connected (e-mail, voice mail, , text messaging, and so on) and with many people feeling overwhelmed because of this high degree of connectedness, what are some ways to give yourself a break from always being on call whil..
How you can use futures or options to alleviate your fears : Assume that you will inherit a $1 million trust fund from your family when you turn 21 next year.- Explain in detail how you can use futures or options to alleviate your fears.
How would you design a proposal measuring the effect : How would you select cases and controls for this study and how would you define exposure and outcome variables for a case-control study design? What other factors would you control for?

Reviews

Write a Review

 

Financial Management Questions & Answers

  Evaluating an investment for firm with multiple divisions

When evaluating an investment for a firm with multiple divisions that each have different risk,

  Compute the firms actual interest cost in dollars

In mid-December, a bank Treasurer projects that loan demand will require a $10 million borrowing on March 15. The contractual loan rate is 125 basis points over LIBOR. Compute the firm’s actual interest cost in dollars. Compute gain or loss in the fu..

  Projections given for price-quantity-variable costs

We are evaluating a project that costs $855,000, has an ten-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 121,000 units per year. The projections given for ..

  Preferred stock rate of return

What is the required rate of return on a preferred stock with a $50 par value, a stated dividend of 9% of par, and a current market price of (a) $66, (b) $86, (c) $115, and (d) $137 (assume the market is in equilibrium with the required return equal ..

  What was the firms operating cash flow and net income

During the year, the Senbet Discount Tire Company had gross sales of $1.2 million. The firm’s cost of goods sold and selling expenses were $539,000 and $229,000, respectively. The firm also had notes payable of $940,000. These notes carried an intere..

  What is your best estimate of CDBs cost of equity

Stock in CDB Industries has a beta of .96. The market risk premium is 7.1 percent, and T-bills are currently yielding 4.1 percent. CDB’s most recent dividend was $2.50 per share, and dividends are expected to grow at a 5.1 percent annual rate indefin..

  Investment portfolio-contribute a fixed amount every year

Let’s assume you want to retire with $1,000,000 in your investment portfolio. Given that your investment timeline is 35 years, the return on investment is going to average 8% and you plan to contribute a fixed amount every year for 35 years. What wil..

  What is the effective annual cost of trade credit under term

Pet Store Inc. sells on terms of 2/10, net 50. What is the effective annual cost of trade credit under these terms? Use a 365-day year. Please show formula and explain step by step. I've tried other formulas on here and continue to get the wrong answ..

  What is the present value of the bond

A 10-year U.S. Treasury bond with a face value of $10,000 pays a coupon of 5.50% (2.750% of face value every six months). The semi annually compounded interest rate is 4.6% (a six-month discount rate of 4.6/2 = 2.3%). What is the present value of the..

  Loan off by making your planned monthly payments

Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost: You just received an offer in the mail to transfer your $13,000 balance from your current credit card, which charges an annual rate of 20.8 percent, t..

  Three-year treasury securities currently yield

Three-year Treasury securities currently yield 6%, while 4-year Treasury securities currently yield 6.5%. Assume that the expectations theory holds. What does the market believe the rate will be on 1-year Treasury securities three years from now?

  Bond equivalent yield and the effective annual return

A Treasury bill with 131 days to maturity is quoted at 96.920. What is the bank discount yield, the bond equivalent yield, and the effective annual return?

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