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The futures price for the June 2009 CBOT bond futures contract is 117-23. A.Calculate the...

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Accounting

The futures price for the June 2009 CBOT bond futures contract is 117-23.

A.Calculate the conversion factor for a bond maturing on January 1, 2025, paying a coupon of 8%.

B.Calculate the conversion factor for a bond maturing on October 1, 2030, paying a coupon of 5%.

C.Suppose that the quoted prices of the bonds in (a) and (b) are 165.00 and 134.00, respectively. Which bond is cheaper to deliver?

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