The 9-month LIBOR rate is 5%, and the 6-month LIBOR rate is 4%, on the basis of continuous compounding and 365 days a year.   The 3-month Eurodollar futures price quote for a contract with a delivery date in 6 months should be

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Q: 170

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A: This post has three questions. The first has been answered below.

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Q: A1

A: that an investor expects while putting his investment value at stake. State of Nature…

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A:

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.