The two-year treasury yield is 158 per year compounded


1. The two-year Treasury yield is 1.58% per year, compounded semiannually. If a barrel of oil has a spot price of $57.49, what is the two-year futures price for oil? Please assume that there are no storage costs or convenience yield.

2. The S&P 500 index is trading at 2,569.73 points. If the one-year spot rate, compounded annually, is 1.4%, and the one-year S&P futures price is 2,551.74 points, what is the dividend yield on S&P500?

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Financial Management: The two-year treasury yield is 158 per year compounded
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