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It is February 25, 2022. The cheapest-to-deliver bond in an August 2022 Treasury bond futures contract is a 5% coupon bond, and delivery is expected

It is February 25, 2022. The cheapest-to-deliver bond in an August 2022 Treasury bond futures contract is a 5% coupon bond, and delivery is expected to be made on August 31, 2022. Coupon payments on the bond are made on January 1 and July 1 each year. The rate of interest with continuous compounding is 2% per annum for all maturities. The conversion factor for the bond is 0.8801. The current quoted bond price is $151.31. Calculate the quoted futures price for the contract.

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