Treasury Note and Bond futures are priced based on:
A) Theoretical coupon yield of 8%
B) An average of all of the deliverable bond prices
C) The price(s) of the cheapest to deliver bond(s)
D) The average invoice amount of the deliverable bonds
Reveal the Answer
The answer is C) The price(s) of the cheapest to deliver bond(s)
Chartered Investment Banking Analyst™
The CIBATM program develops the complete set of desk-ready skills to succeed in the competitive world of corporate finance and investment banking. Candidates will develop familiarity with US GAAP and IFRS accounting standards, learn how to value investment projects under conditions of uncertainty, acquire essential financial modeling skills, be able to assess the credit quality of companies and gain a thorough understanding of the M&A process from target company identification to funding strategies and deal structuring.
“Network with people that you know because everyone in the finance industry has something you can learn from and I found that the people that you want to talk to love talking about their jobs. I’ve learned the most from bosses and colleagues and from practical experience. You can always be challenged in finance because there’s always something new happening in the industry.”
Caroline
March 2020, Derivatives Professional Certificate