1. You are short a future and you wish to make delivery. The cash and futures market are flat (equal in price to each other). When during the delivery period should you deliver the commodity? Why?
2. Chamberlain Co wants to issue new 20 year bonds for some much-needed expansion projects. The company currently has 7 percent coupon bonds on the market that sell for $1085 make semiannual payments and mature in 20 years.
What coupon rate should the company set on its new bonds if it wants them to sell at par?
Coupon rate ______%