On June $25,2021,$ the futures price for the June $2021$ bond futures contract is $118-23.$

$($a$)$ Calculate the conversion factor for a bond maturing on January $1,2037,$ paying a coupon of $10\%.$

$($b$)$ Calculate the conversion factor for a bond maturing on October $1,2042,$ paying a coupon of $7\%.$

$($c$)$ Suppose that the quoted prices of the bonds in $($a$)$ and $($b$)$ are $169\mathrm{.}00$ and $136\mathrm{.}00,$ respectively. Which bond is cheaper to deliver?

$($d$)$ Assuming that the cheapest to deliver bond is actually delivered on June $25,2021,$ what is the cash price received for the bond?

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