Suppose a CBOT 10-Year U

question 30

Multiple Choice

Suppose a CBOT 10-year U.S.Treasury note futures contract has a quoted price of 103-18.What is the implied annual interest rate inherent in the futures contract?

• A)4.74%
• B)4.99%
• C)5.25%
• D)5.53%
• E)5.81%

---

Definitions:

Budgeted Income Statement

A financial statement that shows projected revenues, costs, expenses, and net income for a specific period of time.

Cash Budget

A financial plan that estimates cash inflows and outflows over a particular period of time, often used to assess liquidity.

Budgeted Sales

Projected sales figures used in financial planning and budgeting that estimate future sales during a specific period.

Budgeted Purchases

An estimate of the total purchases a business plans to make during a certain time period.