Suppose a Hypothetical CBOT 13-Year U

question 14

Multiple Choice

Suppose a hypothetical CBOT 13-year U.S. ,semiannual payment,6% coupon Treasury note futures contract has a quoted price of 89-090.If the note has a $1,000 par value,what is the implied annual interest rate inherent in this futures contract? Do not round your intermediate calculations.
?

• A) 7.35%
• B) 8.30%
• C) 7.28%
• D) 8.15%
• E) 5.97%

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Definitions:

Two-tail

A statistical test in which the regions of rejection are on both sides of the sampling distribution, used to check for any significant difference, regardless of direction.

One-sample T-test

A statistical test used to determine if the mean of a single sample differs significantly from a known or hypothesized population mean.

Parametric Counterpart

Statistical methods or models that assume the data comes from a population that can be characterized by a set of parameters.

Friedman Test

A non-parametric test used to detect differences in treatments across multiple test attempts, especially for matched or paired subjects.