You were just notified that you will receive $100,000 in two months from the estate of a deceased relative. You want to invest this money in safe, interest-beaning instruments, so you decide toI purchase five-year Treasury notes. You believe, however, that interest rates are headed down, and you will have to pay a lot more in two months than you would today for five-year Treasury notesYou decide to look into futures, and find a quote of 113-27.3 for five-year Treasures deliverable in two months (contracts trade in $100.000 unts and require an initial margin is $680) What does thequote mean in terms of price, and how many contracts will you need to buy? How much money will you need to buy the contract, and how much will you need to settle the contract?5-year Treasury notes are quoted at a par value of $100,000. Which of the following is the best answer? (Select the best answer below)OA Prices are quoted in increments of 1/32 of 1%, so the quote of 113-27.3 branslates into 113-27 3/32, which converts to a quote of 113.85313% of par Five-year Treasury notes have apar value of $10,000, so you will need to buy ten contractsPrices are quoted in increments of 1/32 of 1%, so the quote of 113-27.3 translates into 113-27 3/32, which converts to a quote of 113.85313% of par Five-year Treasury notes have apar value of $100,000, so you will need to buy one contractOC Prices are quoted in increments of 1/100 of 1%, so the quote of 113-27.3 translates into 113-273/100, which converts to a quote of 113.2730% of par. Five-year Treasury notes have apar value of $10,000, so you will need to buy ten contractsⒸD Prices are quoted in increments of 1/100 of 1%, so the quote of 113-27-3 translates into 113-27 3/100, which converts to a quote of 113 2730% of par Five-year Treasury notes have apar value of $100,000, so you will need to buy one contractThe initial margin deposit, or the amount money you will need to buy the contract(Round to the nearest dolar)

Investors are set to receive a substantial sum of $500,000 from the estate of a deceased relative.…

↑ You were just noted that you will receive $100,000 in two months from the estate of a deceased relative purchase five year Treasury notes You believe, however, that interest rates are headed down You decide to look into futures, and find a quole of 113-27 ve-year Treasurer OA Prices are used in increments of 132 of 1%, so the quote of 113-273 ales into 113-27 3/32, which converts s par value of $10,000, so you will need to buy ten contracts Prices are quoted in increments of 132 par value of $100.000 s money s ODPrices are quoted in increments of 1/100 par value of $100.000, rest-bearing instruments, so you decide to year Treasury holes quote of 113-27.3 translates into 113-27 3/32, which converts to a quote of 113.85313% of par Five-year Treasury notes have a OC Prices are quoted in increments of 1/100 of 1%, so the quote of 113-273 antes into 113-273/100, which converts to a quote of 1132730% of par. Five year Treasury notes have s par value of $10,000, so you will need en contracts 1%, so the quote of 113-273 ansates into 113-27 3/100, which convers quote of 113 2730% of par Five-year Treasury notes have a

↑ You were just noted that you will receive $100,000 in two months from the estate of a deceased relative purchase five year Treasury notes You believe, however, that interest rates are headed down You decide to look into futures, and find a quole of 113-27 ve-year Treasurer OA Prices are used in increments of 132 of 1%, so the quote of 113-273 ales into 113-27 3/32, which converts s par value of $10,000, so you will need to buy ten contracts Prices are quoted in increments of 132 par value of $100.000 s money s ODPrices are quoted in increments of 1/100 par value of $100.000, rest-bearing instruments, so you decide to year Treasury holes quote of 113-27.3 translates into 113-27 3/32, which converts to a quote of 113.85313% of par Five-year Treasury notes have a OC Prices are quoted in increments of 1/100 of 1%, so the quote of 113-273 antes into 113-273/100, which converts to a quote of 1132730% of par. Five year Treasury notes have s par value of $10,000, so you will need en contracts 1%, so the quote of 113-273 ansates into 113-27 3/100, which convers quote of 113 2730% of par Five-year Treasury notes have a

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Please no written by hand and no image 2. A forward contract for 4 months is entered into when a stock index is at 1000. If the risk free interest rate is 3% per year (with continuous compounding) and the dividend yield on the index is 2% per year, what is the futures price? After 1 month the index price is 980, what is the value of the futures agreement assuming the risk free rate with continuous compounding is now 5% (but the original dividend rate remains 2%) and the contract price is equal to $50 times the index value?
Can you please help with the question in the picture attached? The answer should be only one and I’m quite confused. Thank you!
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= You were just notified that you will receive $100,000 in two months from the estate of a deceased relative You want to invest this money in safe, interest-bearing instruments, so you decide to purchase five-year Treasury notes. You believe, however, that interest rates are headed down, and you will have to pay a lot more in two months than you would today for five-year Treasury notes. You decide to look into futures, and find a quote of 108-28.7 for five-year Treasuries deliverable in two months (contracts trade in $100,000 units and require an initial margin is $680). What does the quote mean in terms of price, and how many contracts will you need to buy? How much money will you need to buy the contract, and how much will you need to settle the contract? XO 5-year Treasury notes are quoted at a par value of $100,000. Which of the following is the best answer? (Select the best answer below.) OA. Prices are quoted in increments of 1/32 of 1%, so the quote of 108-28.7 translates into…
Check My Work eBook What is the present value of a security that will pay $37,000 in 20 years if securities of equal risk pay 11% annually? Do not round intermediate calculations. Round your answer to the nearest cent. 2$
Assume today's settlement price on a CME EUR futures contract is $1.3140/EUR. You have a short position in one contract. Your performance bond account currently has a balance of $1,700. The next three days' settlement prices are $1.3126, $1.3133, and $1.3049. Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performance bond account after the third day. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Changes in the performance bond account W
This morning (Day 0) you take a short position in a pound futures contract that matures in 3 days (Day 3). The future price is $1.9750 today. The contract size is £62,500 and its initial performance bond and maintenance bond are $2,430 and $1,830, respectively. a. (b) Assuming that the daily settlement prices are indicated below, how would the daily change in settlement future prices affect your account? Show the daily gain/loss and account balance. Day 0 1 2 3 Settlement 1.9750 1.9700 1.9815 1.9907 Total Gain/Loss Account Balance b. During this period, did you receive a margin call? If you did, on what day? c. At the end of Day 3, how much in total did you make/lose on this futures contract?
Bonds of Francesca Corporation with a par value of $1,000 sell for $940, mature in six years, and have a 7% annual coupon rate paid semiannually. Do not round intermediate calculations. Round your answers to two decimal places. Calculate: a. current yield. 7.45 % annually b. yield to maturity, to the nearest basis point. 8.29 % annually c. horizon yield (or realized return) for an investor with a four-year holding period and a reinvestment rate of 5% over the period. At the end of four years, the 7% coupon bonds with two years remaining will sell to yield 7%. % annually
Consider a 5-year $100 fixed notional equity-for-Libor swap, where the stock price at inception was $35. The swap is based on semi-annual payments on both legs, with an Actual/360 convention for the Libor leg. Two years after inception, on the fourth reset date, the stock price is $40. Assume that the number of days in the next period is 183, and the six-month Libor rate on this reset date is 10%. What is the value of the swap from the point of view of the receiver of equity return Zero +14.29 +4.29 O-14.29
Consider three securities that pay risk free cash flows over the next three years and that have the current market prices shown here Security Price Today (5) Cash Flow in Two Years (5) Cash Flow in Three Years ($) Name 81 82 83 $9268 $84.79 $386 09 Cash Flow in One Year ($) 100 0 0 0 100 0 0 0 500 Calculate the no-arbitrage price, or the price that eliminates any arbitrage opportuntes, of a new secunty 84, that plays risk toe cash flows of $100 in one year and $500 in two years The current no-arbitrage price of Security B4 is: s(round your answer to two decimal places) K
Complete the table to determine the effect of the number of compounding periods when computing interest. Suppose that $11,000 is invested at 3.8% interest for 11 yr under the following compounding options. Round answers in the second column to the nearest whole number. Round answers in the last column to the nearest cent. Compounding Option n Value Result X (a) Annually n = 1 $ (b) Quarterly (c) Monthly n = 4 n = 12 (d) Daily (e) Continuously n = 365 Not Applicable Es E

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