A $1,000 Treasury Note Has 4

question 21

Multiple Choice

A $1,000 Treasury note has 4.5 years left to maturity, a yield to maturity of 4.25%, and a coupon rate of 4.50%. What is the price of the bond?

• A)$1,007.83
• B)$1,008.53
• C)$1,009.56
• D)$1,010.14
• E)$1,011.96

Identify and differentiate between the various derivatives instruments like options, forwards, futures, and swaps.

Understand the operational mechanisms and strategic uses of options in financial markets.

Grasp the concept of hedging strategies and their applications in financial risk management.

Understand the concept of a zero-sum game in the context of derivatives contracts.

---

Definitions:

Partnership Capital

When a partnership or limited liability partnership is formed, partners contribute cash or other property to the partnership.

Loans

A financial arrangement in which an entity lends money to another with the expectation it will be repaid, often with interest.

Limited Partner

An owner of a limited partnership who has no right to manage the business but who possesses liability limited to his capital contribution to the business.

Manage

The act of directing, controlling, and organizing the activities or operations of an entity or group.