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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 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?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 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?
- 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?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 placesA 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?What is interest rate (or price) risk? Which bondhas more interest rate risk: an annual payment1-year bond or a 10-year bond? Why?