Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the price of a 100 par value t-bond maturing in 15

The price of a 100 Par Value T-Bond maturing in 15 years and paying a...

80.2K

Verified Solution

Question

Finance

The price of a 100 Par Value T-Bond maturing in 15 years and paying a 7% coupon is 130. The bond's futures contract settling in 1 month is priced at 135. The one month CD rate is 1%. What is the theoretical futures price? Hint: First determine which strategy (buy bond/short futures or sell bond/buy futures) results in an arbitrage profit.

- 105.48 - 129.53 - 99.50 - 130.48

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

0 00 0 18 A B E C Speed 1x A food web includes many...

Biology
Q

A quadrilateral has vertices A = (0,0), B = (2,4), C = (0,5), and D=...

Geometry
Q

what caused the Recession 2007-2009

Finance
Q

You find the following corporate bond quotes. To calculate the number of years until maturity, assume...

Finance
Q

Apply the social ecology model to the health issues of obesity. Describe factors associated with obesity...

Biology
Q

Classify each compound as an acid, salt, base, oxide, binary molecular, or organic. AlF3                                        9. CCl4                                   17. NO2         HNO3                                      10. H2SO4                             18. NH4Cl NaNO3                                   11. CuCl2                              19. C3H7OH N2O2                                       12. NH4ClO3                         20. NH3 Ca(OH)2                                 13. Sn(OH)4                         21....

Chemistry
Q

Use the Python programming language to complete below (I need the New Answer for this, and...

Programming
Q

What directly supplies the energy needed to actively transport sodium ions across the plasma membrane...

Biology
Q

Assuming the Sun to be a spherical body of radius R at a temperature of...

Physics
Q

Hearty Soup Co. uses a process cost system to record the costs of processing soup,...

Accounting
Q

Coronado Compary had a beginning inventory on January 1 of 190 units of Product 41815...

Accounting
Q

In 2020, Orear Manufacturing purchased inventory in 2020 for $700,000. Before the December 31, 2020...

Accounting