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Question: Assume the Eurodollar futures price at time t0 is 93.83 and the contract expires in 3 months time

a. Calculate the 3-month forward rate implied by this price.

b. Calculate the repayment amount for bonds with maturities of 3, 6, 9 and 12 months if the investor bought $5 million future contracts.

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  • Category:- Basic Finance
  • Reference No.:- M92505587
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