Conyers Bank Holds Treasury Bonds with a Book Value of $30

question 29

Multiple Choice

Conyers Bank holds Treasury bonds with a book value of $30 million. However, the Treasury bonds currently are worth $28,387,500. If Treasury bond futures prices are currently 89-00/32^nds, what is the value of the Treasury bond futures hedge position?

• A)$30,000,000.
• B)$28,387,500.
• C)$26,700,000.
• D)$89,000,000.
• E)$890,000.

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Definitions:

Sudden

Occurring or done quickly and unexpectedly, without warning.

Emotional Regulation

The process of managing and responding to one's emotions in a healthy and productive manner.

Temperament

The inherent part of an individual's personality concerning their emotional nature and habitual behaviors.

Chess and Thomas

Researchers known for their contributions to developmental psychology, particularly in the study of temperament in children.