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The most recent settlement bond futures price is 115. Which of the following four bonds is cheapest to deliver (use the gross basis)? Quoted bond

  1. The most recent settlement bond futures price is 115. Which of the following four bonds is cheapest to deliver (use the gross basis)?
  1. Quoted bond price = 128; conversion factor = 1.1000.
  2. Quoted bond price = 163; conversion factor = 1.4000.
  3. Quoted bond price = 150; conversion factor = 1.3000.
  4. Quoted bond price = 144; conversion factor = 1.2500.

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