year forward contract was established with a price of $70.25. Now, a year and a half later (t= 1.5 years), the spot price is $81.19 and the risk- free rate is 5%. Calculate the value of the forward con

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Q: Suppose the risk-free interest rate is 6.2% APR with monthly compounding. If a $3.3 million MRI…

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.