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Suppose that the T-Bond futures price is 101-12. The following information is given about four bonds. Bond Cash Price Conversion Factor 1 125-05 1.2131 2

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Suppose that the T-Bond futures price is 101-12. The following information is given about four bonds. Bond Cash Price Conversion Factor 1 125-05 1.2131 2 142-15 1.3792 3 115-31 1.1149 4 144-02 1.4026 Which of the four bonds would be the cheapest to deliver? o Bond 4 O Bond 3 o Bond 1 o Bond 2

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