Suppose the December CBOT Treasury Bond Futures Contract Has a Quoted

question 8

Multiple Choice

Suppose the December CBOT Treasury bond futures contract has a quoted price of 80'07.If annual interest rates go up by 1.00 percentage point, what is the gain or loss on the futures contract? (Assume a $1,000 par value, and round to the nearest whole dollar.)

• A) −$78.00
• B) −$82.00
• C) −$86.00
• D) −$90.00
• E) −$95.00

Assess the impact of compounding frequency on investment growth or decline.

Understand the concept of total return from an investment, including income and capital gains yields.

Perform break-even analysis on investments after experiencing gains and losses.

Understand how to calculate income yield from an investment.

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Definitions:

World's Population

The current population of humans inhabiting the planet.

LDCs

Less Developed Countries, which are countries that exhibit the lowest indicators of socioeconomic development.

Birth Rate

The number of live births per thousand people in a population within a given year.

LDCs

Less Developed Countries, which are nations with lower levels of income, industrialization, and modernization.