On September 12, the cheapest-to-deliver bond on the December Treasury bond futures contract is the 9s of

Question:

On September 12, the cheapest-to-deliver bond on the December Treasury bond futures contract is the 9s of November YY+18. The bond pays interest semiannually on May 15 and November 15. Its price is 125 12/32. The December futures price is 112 24/32. The bond has a conversion factor of 1.1002. Its accrued interest September 12 is 2.91 and its accrued interest on December 1 is 4.92, which reflects the payment of the on November 15. Assuming delivery on December 1, determine the implied repo rate. Then write an interpretation of your result?
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...