Problema coca-cola bond futures contract settles at, Ask an Expert

Finance

Problem:

A Coca-Cola bond futures contract settles at 105-8.

Required:

Question 1: What is the present value of the Coca-Cola futures contract?

Question 2: If the contract settles at 105-8, are current market interest rates higher or lower than the standardized rate on a futures contract? Explain.

Question 3: What is the implied annual interest rate on the futures contract?

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91163406

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