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Suppose that the Treasury bond futures price (the most recent settlement price) is 103.5. Which of the following four bonds is cheapest to deliver? Bond

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Suppose that the Treasury bond futures price (the most recent settlement price) is 103.5. Which of the following four bonds is cheapest to deliver? Bond Quoted Bond Price 110 2 3 4 160 131 143 Conversion Factor 1.0400 1.5200 1.2500 1.3500

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