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Question
91-day Treasury bill rates = 9.71 percent
91-day Treasury bill futures rates = 9.66 percent
(Reminder: Treasury bill prices are calculated using the following formula:
P = FV * (1 - dt/360)
where P = price, FV = face value, d = discount yield, and t = days until maturity.)
An investor buys a $100,000 Treasury bond futures contract at 99-13/32nds. The following day the Treasury bond futures settlement price is 99-26/32nds. What is the one-day profit or loss on the Treasury bond futures position?
A. A profit of $406.25.
B. A loss of $406.25.
C. A profit of $130.
D. A loss of $329.
E. A profit of $329.
Answer
This answer is hidden. It contains 60 characters.
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