Today is July 1 . You hold a November Treasury bond futures contract with a price of 92:15 ( i . e . , 92 plus 15 / 321 ) , with a delivery date of November 15 in the same year . You have identified the two bonds below that could be used for delivery against the futures contract Bond A Bond B Maturity 265 years 31 years Coupon rate 50 % 8.50% Asking price 93:2 144:13 Coupon dates April 15 , October 15 June 15 , December 15 Callable ? NO NO Assume that the next year is not a leap year , and that the market repo rate is 5.50% Find the conversion factors for Bond A and Bond B . Use the downloadable Excel spreadsheet on the Chicago Mercantile Exchange ( CME ) website to http : / / www . megroup . com / trading interest rates / us - treasury - futures - conversion factor- lookup - tables . html Identify the cheapest - to -deliver bond