Question: The standard Treasury Bond futures contract has a face value of $100,000, at least 15 years to maturity and a coupon of 6%, payable

The standard Treasury Bond futures contract has a face value of $100,000, at least 15 years to maturity and a coupon of 6%, payable semi-annually. The quoted price of the futures contract is based on this standard bond. Instead of the standard bond, the short position chooses to deliver a treasury bond with a remaining maturity of 18 years and a 4% coupon, payable semi-annually. What conversion factor will be applied to the quoted price?

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