12.) On January 1, the listed spot and futures prices of a Treasury bond were 95.8 and 93.13. You purchased $1,000 par value Treasury bonds and sold one Treasury bond futures contract. One month later, the listed spot price and futures prices were 94 and 92, respectively. If you were to liquidate your position, your profits would be a Multiple Choice a.) $670 loss. b.) $670 profit. c.) $866.2 loss. d.) $866.2 profit. e.) None of the options are correct.
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
12.) On January 1, the listed spot and futures prices of a Treasury bond were 95.8 and 93.13. You purchased $1,000 par
Multiple Choice
a.) $670
b.) $670 profit.
c.) $866.2 loss.
d.) $866.2 profit.
e.) None of the options are correct.
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