Suppose a hypothetical CBOT 13-year U.S., semiannual payment, 6% coupon Treasury note futures contract has a quoted price of 89-090. If the note has a $1,000 par value, what is the implied annual interest rate inherent in this futures contract? Do not round your intermediate calculations. ?
A. 7.35%
B. 8.30%
C. 7.28%
D. 8.15%
E. 5.97%
Answer: C
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