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A Treasury bond futures contract has a settlement price of 89'08. What is the implied annual yield?
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- A Treasury bond futures contract is selling for 94’160. What is theimplied annual yield?The Treasury bond futures contract has a target price of 89-8. What is the estimated annualized return?The June Treasury bond futures contract has a quoted price of 95'12. What is the implied annual interest rate?
- A bond has a yield to maturity of 9.28 percent. If the inflation rate is 2.0 percent, what is the real rate of return on the bond?Assume the real risk-free is 1% and the average annual expected inflation rate is 4%. The DRP and LP for bond A are each 3%, and the applicable MRP is 3%. What is Bond A's interest rate?A bond that pays interest semiannually has a price of $981.73 and a semiannual coupon payment of $27.75. If the par value is $1,000, what is the current yield?
- What is interest rate (or price) risk? Which bondhas more interest rate risk: an annual payment1-year bond or a 10-year bond? Why?Assume that the real risk-free rate is 2% and the average annual expected inflation rate is 4%. The DRP and LP for Bond A are each 2%, and the applicable MRP is 3%. What is Bond A's interest rate?A bond that pays interest semiannual has a price of 981.45 and semiannual coupon payment of 28.50. If the par value is 1000. What is the current yield?
- Compute the bond’s current yield based on the last traded price of $1,016.20.Assume that the real risk free rate is 3% and the average annual expected inflation rate is 5%. The DRP and LP for Bond A are each 1% and the applicable MRP is 2%. What is bond A’s interest rate?Assume that the real risk free rate is 2% and the average expected inflation rate is 3% for each future year. The default risk premium and the liquidity premium for bond x are each 1% and the applicable Maturity Risk premium is 2% what is bond x’s interest rate. Round to 2 decimal places