The Average Duration of the Loans Is 10 Years

question 159

Multiple Choice

The average duration of the loans is 10 years. The average duration of the deposits is 3 years. What is the number of T-bond futures contracts necessary to hedge the balance sheet if the duration of the deliverable bonds is 9 years and the current price of the futures contract is $96 per $100 face value?

• A)1,630 contracts.
• B)1,475 contracts.
• C)1,900 contracts.
• D)2,078 contracts.
• E)3,225 contracts.

Practice concise writing to enhance clarity and effectiveness in business messaging.

Employ strategies to reduce misunderstandings in cross-cultural communication.

Identify and use the main idea in paragraphs to structure written communication effectively.

Understand the appropriate strategies for organizing business messages.

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Definitions:

Second Founding

Refers to the period immediately following the Civil War, focusing on the Reconstruction amendments (13th, 14th, and 15th) that aimed to rebuild and redefine the United States.

Constitution

The fundamental set of laws and principles that outlines the government structure, rights of citizens, and powers of the state within a country.

Reconstruction

The period from 1865-1877 following the American Civil War, during which the Southern states were reorganized and reintegrated into the Union.

Waving the Bloody Shirt

A phrase that originated in the post-Civil War era representing the use of war memories or martyrs to galvanize public opinion or garner support, typically for political purposes.