An 8-year $1,000 par Treasury bond pays a 7 percent semi-annualcoupon. The bond has a conversion factor of 1.025. The risk-free is6 percent and the annual yield on the bond is 7 percent. The bondjust made a coupon payment. The price of a 15-month futurescontract is closest to:
A. $1 049.32
B. $979.00
C. $983.32
