Assume the december cbot treasury bond futures contract has, Ask an Expert

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Suppose the December CBOT Treasury bond futures contract has a quoted price of 89-09. The T-bond is a 20-year 6% coupon bond and the interest is paid semi-annually. What is the implied annual interest rate inherent in the futures contract?

a. 6.32%
b. 6.65%
c. 7.00%
d. 7.35%
e. 7.72%

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Category:- Basic Finance
Reference No.:- M9208927

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