Highfield Securities buys a $100,000 par value Treasury bond…
Highfield Securities buys a $100,000 par value Treasury bond futures contract. There is an initial margin requirement of $3,475 and a margin maintenance requirement of $1,575. Assume Maxwell’s investment is for 6 months. To have a 100 percent annualized return on the initial $3,475 margin, by what percent of par value must the bond increase? Round your answer to the nearest basis point (i.e. xx.xx%)