A 6-year bond with a 4% coupon sells for $102.46 with a 3.5384% yield. The conversion factor

Question:

A 6-year bond with a 4% coupon sells for $102.46 with a 3.5384% yield. The conversion factor for the bond is 0.90046. An 8-year bond with 5.5% coupons sells for $113.564 with a conversion factor of 0.9686. (All coupon payments are semiannual.) Which bond is less expensive (cheaper) to deliver given a T-note futures price of 113.81?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...