The most recent futures settlement price is $94 per $100 face value. The following three bonds are

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The most recent futures settlement price is $94 per $100 face value. The following three bonds are available for delivery under this futures contract:

Bond 1: Quoted price 100, conversion factor 1.05

Bond 2: Quoted price 143, conversion factor 1.5

Bond 3: Quoted price 115, conversion factor 1.2

Which of these bonds is the cheapest-to-deliver bond?

	a.	Bond 1
	b.	Bond 2
	c.	Bond 3

Posted Date: Sep 15, 2021 01:34 AM

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The most recent futures settlement price is $94 per $100 face value. The following three bonds are

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Answer Correct Option a Bond 1 Reason Cheapestt... View the full answer

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