Suppose a hypothetical CBOT 12-year U.S. ,semiannual payment,7% coupon Treasury note futures contract has a quoted price of 103-180.If the note has a $1,000 par value,what is the implied annual interest rate inherent in the futures contract? Do not round your intermediate calculations.
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A) 6.43%
B) 5.25%
C) 5.12%
D) 6.56%
E) 7.15%

Question

Quizplus · Accepted Answer

11ea856c_8b2b_b108_9aec_0b56737ca420_TB1222_00 Annual rate: I/YR = 6.56%
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Suppose a Hypothetical CBOT 12-Year U