Question

The purchaser of a tbond futures contract priced at 101-16 at the time of the sale agrees to deleiever 100,000 facevalue treasury bond in exchange for

Answer 1

Answer:

The answer is "True".

Explanation:

Please find the complete question in the attached file.

It implies that its price of the bond is 101-16, which is to say

$\to 101 + \frac{16}{32}\\\\\to \frac{3232+ 16}{32} \\\\\to \frac{3248}{32} \\\\\to 101.5$

Each bond is thus stated as $101.5 \%$ face value

$\to 101.5\% \times 100,000 \\\\\to 101,500.00$

That's why this statement is true.