Suppose the December CBOT Treasury Bond Futures Contract Has a Quoted

question 4

Multiple Choice

Suppose the December CBOT Treasury bond futures contract has a quoted price of 80'07.What is the implied annual interest rate inherent in the futures contract?

• A) 6.86%
• B) 7.22%
• C) 7.60%
• D) 8.00%
• E) 8.40%

---

Definitions:

Core Values

Fundamental beliefs or principles that are central to an organization's identity and guide its actions and decision-making process.

Motivation

The psychological processes that arouse and direct goal-directed behavior.

Selective Perception

The cognitive process by which individuals perceive what they want to in media messages while ignoring opposing viewpoints.

Stimulus Discrimination

The ability of an organism or individual to differentiate between different stimuli, often used in the context of learning and behavior modification.