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.

Understand the impact of tangible and intangible benefits on investment decisions.

Compare investment opportunities to identify the most financially viable options.

Apply discount rates appropriately in the calculation of NPV and IRR.

Understand the importance of good employee relations practices in implementing organizational strategies.

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Definitions:

Economic Improvements

Enhancements or positive changes in the economic conditions of a region, sector, or community, often reflected in metrics like GDP growth, employment rates, and living standards.

Social Improvements

Initiatives or endeavors aimed at enhancing the well-being and quality of life of a community or society through various means, including education, health services, and community development.

Sustainability

The practice of meeting current needs without compromising the ability of future generations to meet their own needs, often focusing on environmental, social, and economic balance.

United Nations

An international organization founded in 1945 to promote peace, security, and cooperation among countries.