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Use the following information for the next 3 questions, Considering the following two bonds making semiannual coupon payments that the short position in T-Note futures

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Use the following information for the next 3 questions, Considering the following two bonds making semiannual coupon payments that the short position in T-Note futures could choose to deliver: Bond A: A 10-year bond (face value of $100) with an 8.00% coupon sells for $107.02. The bond would have a price of $114.88 if its yield were 6%. Bond B: A 6.50% coupon bond (face value of $100) with exactly 7 years to maturity sells for a price of $98.37. The bond would have a price of $102.82 if its yield were 6%. The observed T-Note futures price is 94.38. Question 8 (4 points) What is the invoice price if Bond A is chosen to be delivered? The invoice price is 108.42 if Bond A is chosen to be delivered. The invoice price is 101.01 if Bond A is chosen to be delivered. The invoice price is 122.94 if Bond A is chosen to be delivered. The invoice price is 107.02 if Bond A is chosen to be delivered. Question 9 (4 points) What is the invoice price if Bond B is chosen to be delivered? The invoice price is 97.04 if Bond B is chosen to be delivered. The invoice price is 92.84 if Bond B is chosen to be delivered. The invoice price is 98.37 if Bond B is chosen to be delivered. The invoice price is 101.14 if Bond B is chosen to be delivered. Question 10 (4 points) Which bond is cheaper to deliver? Both bonds yield the same result. Bond B Bond A

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