Which of the Following Relating to Commonwealth Treasury Bond Futures

question 26

Multiple Choice

Which of the following relating to Commonwealth Treasury bond futures is incorrect?

• A) The three-year and 10-year Treasury bonds must be settled in cash
• B) They are quoted on the basis of their clean price
• C) A 10-year Treasury bond futures contract's yield is quoted to three decimal places
• D) Currently the three- and 10-year bond futures are traded on the SFE

Understand how interest earned on a sinking fund is accounted for and its effect on financial statements.

Calculate the gain or loss associated with the redemption of bonds.

Know the purpose and benefits of establishing a sinking fund for bond redemption.

Gain knowledge on journalizing transactions related to bonds, including issuance, interest payments, and retirement.

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