22. Suppose there are three deliverable bonds in a Treasury Bond futures contract whose current cash prices (for a face value of $100,000) and conversion factors are as follows:
(a) Bond 1: Price $98,750. Conversion factor 0.9814.
(b) Bond 2: Price $102,575. Conversion factor 1.018.
(c) Bond 3: Price $101,150. Conversion factor 1.004.
The futures price is $100,625. Which bond is currently the cheapest-to-deliver?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.