Final Exam Preparation - Stanford University

The deliverable bond for that particular contract is a 25-year bond, currently traded at 100 with a coupon rate of 10%. The current 3-month rate is 7%. Is there any arbitrage opportunity? ... the Eurodollar CD futures contract can be used to lock in a floating-rate payment for each of the next 10 quarters. ... As the frequency and the size of ... ................
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