6. On January 30, 2002, the Teapot Company is considering two T-bonds as potential bonds for delivery against the June 2002 T-bond futures contract. The contract's current price is 102 8/32. The first bond has a coupon rate of 7 % percent and matures on May 15, 2026. It has a current market price of 105.00. The second bond has a coupon rate of 5% percent and matures on May 15, 2024. It has a current market price of 87.00. The June contract expires on June 15th and the settlement price on June 15th is 114.00. The reinvestment rate available to the Teapot Company is 5 percent. Determine which bond would be the cheapest-bond-to-deliver. Show all your calculations