13 On 19 January 2006 we observe the following:

Settlement date 20 January 2006 Futures price 115.07 UK gilt 8% 2015 price 132.31 Conversion factor 1.146 092 8 Repo rate 4.58%

With regard to the Mar06 long gilt future, which has a last delivery day of 31 Mar 2006, calculate the net basis for this bond. Its coupon dates are 7 June and 7 December.

If the UKT 8.75% 2017, which has coupon dates of 25 February and 25 August, is trading at a price of 143.43 and has a conversion factor of 1.225 934 0, what is its net basis?

Which bond is the CTD?