Suppose a Hypothetical CBOT 13-Year U

question 27

Multiple Choice

Suppose a hypothetical CBOT 13-year U.S. ,semiannual payment,6% coupon Treasury note futures contract has a quoted price of 103-180.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,round the new interest rate to 4 decimal places when written as a decimal,and round the change in price up to the nearest whole dollar. ) Do not round other intermediate calculations.
?

• A) ?$111
• B) ?$94
• C) ?$85
• D) ?$71
• E) ?$89

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Definitions:

Hedonism

The moral philosophy advocating that the fulfillment of desires or pleasure constitutes the greatest value and ultimate goal of human existence.

Greek Philosopher

An intellectual from ancient Greece who contributed to the foundation of Western philosophical thought.

Hedonism

A doctrine that proposes seeking pleasure and avoiding pain are essential objectives for humans.

Predestination

is the theological doctrine that all events, including human salvation or condemnation, have been willed by God beforehand.