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

question 196

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 T-bond futures prices decrease to 81-27/32^nds, what is the value of the futures hedge position?

• A)$81,270,000.
• B)$24,553,125.
• C)$26,700,000.
• D)$812,700.
• E)$28,387,500.

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Definitions:

Parental Neglect

A form of child abuse where a parent or guardian fails to provide the basic needs or appropriate care for their child.

Early

Occurring or done before the usual or expected time, typically referring to a point in time closer to the beginning of a period or sequence.

Gender Typing

The process by which children acquire the values, motives, and behaviors considered appropriate for their gender in their culture.

Masculine

Qualities, attributes, or roles traditionally associated with men and boys, often contrasted with feminine traits.