You Short Sell Contract a at 428 and Buy Contract

question 23

Multiple Choice

You short sell contract A at 428 and buy contract B at 333. After one month, you close contract A at 435 and contract B at 339. What is you net profit in points?

• A) - 1.
• B) 13.
• C) - 13.
• D) 1.

Understand the concepts of coupon rate, duration, and their impact on bond investment decisions.

Determine the inflation rate given nominal and real rates of return.

Calculate the duration of bonds and understand its implication on interest rate risk.

Understand the concept of interest rate risk and identify which bonds are more susceptible to it.

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Definitions:

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