A Treasury bond futures contract settles at 105'8.
a. What is the present value of the futures contract in dollars?
b. If the contract settles at 105-8, are current market interest rates higher or lower than the standardized rate on a futures contract? describe.
c. find out the implied annual interest rate on the futures contract?
d. find out the new value of the futures contract if interest rates increase by 1 percentage point annually.