Question: Please Explain in detail how you got the answer the correct answer is A Which of the following bonds would be cheapest to deliver given

Please Explain in detail how you got the answer the correct answer is A

Which of the following bonds would be cheapest to deliver given a T-note futures price of 79.2629? (Assume that all bonds have semiannual coupon payments based on a par value of $100.)

Selected Answer:	c. 6.5-year bond with 4% coupons and a yield of 3.5%
Answers:	a. 7-year bond with 9% coupons and a yield of 10.5%
	b. 8.5-year bond with 4.5% coupons and a yield of 5.5%
	c. 6.5-year bond with 4% coupons and a yield of 3.5%

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