Assume that you have sold a 10 year futures contract with a price of 105-23 (105+15/32) = $105.46875.

The following bonds are available to deliver:

Bond 1: $100 par; coupon = 8%; time to maturity: 7 years; YTM: 5%

Bond 2: $100 par; coupon = 5%; time to maturity: 6.5 years ; YTM: 4.5%

Bond 3: $100 par; coupon = 9%; time to maturity: 9 years; YTM: 6%

Bond 4: $100 par; coupon = 10%; time to maturity: 8 years: YTM: 5.5%

Bond	Price as a decimal	Conversion Factor
1	$117.54	1.1130
2	$102.79	0.9468
3	$120.63	1.2063
4	$128.81	1.2512

For each bond, calculate the gain or loss from delivering it against the futures contract

Bond 1 gain or loss: choose ["loss of $0.15", "gain of $0.15", "gain of $25.34", "loss of 25.34"]

Bond 2 gain or loss: choose ["gain of $2.93", "gain of $8.14", "loss of $2.93", "loss of $8.14"]

Bond 3 gain or loss: choose ["gain of $40.05", "loss of $40.05", "gain of $6.60", "loss of $6.60"]

Bond 4 gain or loss: choose ["gain of $55.70", "loss of $55.70", "gain of $3.15", "loss of $3.15"]

Which bond should you choose to deliver? choose ["bond 2", "bond 3", "bond 4", "bond 1"]