The Duration of a 3-Month Treasury Futures Contract Is 3

question 73

Multiple Choice

The duration of a 3-month Treasury futures contract is 3.46 years. What is the duration of the underlying Treasury note?

• A)2.98 years
• B)3.11 years
• C)3.21 years
• D)3.36 years
• E)3.48 years

Analyze the effects of exchange rate changes on international trade balances.

Interpret balance of payments data and understand its implications for a nation's economy.

Calculate exchange rates and understand their impact on international financial transactions.

Understand the concepts of currency appreciation and depreciation.

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Definitions:

Machine-Hours

A measure of production time, representing the number of hours machines are operated in the production process.

Variable Manufacturing Overhead

Costs in the manufacturing process that fluctuate with production volume, such as utilities or materials, contrasting with fixed overhead costs.

Plantwide Predetermined

This typically involves a single overhead rate calculated for an entire manufacturing plant, used to allocate overhead costs to products.

Manufacturing Overhead

Indirect factory-related costs that are incurred when producing a product, such as the cost of utilities, maintenance, and salaries of supervisors.