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The most recent settlement bond futures price is 103.5. Which of the following four bonds is cheapest to deliver ? Bond 1: Quoted price =

The most recent settlement bond futures price is 103.5. Which of the following four bonds is cheapest to deliver ?

Bond 1: Quoted price = 110; conversion factor = 1.0400.

Bond 2: Quoted price = 160; conversion factor = 1.5200.

Bond 3: Quoted price = 131; conversion factor = 1.2500.

Bond 4: Quoted price = 143; conversion factor =1.3500

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