USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 114

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
A three-month T-bond futures contract (maturity 20 years, coupon 6 percent, face $100,000) currently trades at $98,781.25 (implied yield 6.11 percent) . A three-month T-note futures contract (maturity 10 years, coupon 6 percent, face $100,000) currently trades at $101,468.80 (implied yield 5.80%) . Assume semiannual compounding.
-Refer to Exhibit 15.4. Suppose the yield curve changed so the that the new yield on the T-bond contract rose to 6.5 percent, and the new yield on the T-note contract fell to 5.5 percent. Calculate the profit on the note against bond futures spread. (Assume coupons are paid semiannually)

• A) -$5850.92
• B) -$6,671.42
• C) $6,671.42
• D) $5850.92
• E) $4550.42

Analyze the effects of productivity growth on real wages.

Understand the role and impact of the minimum wage in the labor market.

Identify trends and changes in wage inequality and their implications on gender, education, and race.

Explore the historical context and evolution of labor market regulations and their impact on workers.

---

Definitions:

Psychodynamic Therapy

A therapeutic approach designed to explore the psychological forces underlying an individual's thoughts, feelings, and behaviors.

Unipolar Depression

A major depressive disorder characterized by a persistent low mood and a lack of interest in activities, without the mood swings seen in bipolar disorder.

Cognitive-Behavioral Therapy

A psychotherapeutic treatment that helps patients understand the thoughts and feelings that influence behaviors, aimed at changing negative thought patterns and behaviors.

Psychodynamic Therapy

A form of psychotherapy that explores the psychological forces underlying human behavior, feelings, and emotions, and how they may relate to early experiences.