Suppose the current Treasury bond futures contract has a quoted price of 89-09. The terms of the contract are standard (20 years, 6% coupon paid semiannually). The implied annual interest rate on the contract is
a. about 6 percent.
b. about 12 percent.
c. about 7.0 percent.
d. about 14 percent.
e. In fact, none of the answers is correct