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You hold a short position in a T-bill futures contract where the futures price is 94-2. Which of the following bonds is cheapest to deliver?
You hold a short position in a T-bill futures contract where the futures price is 94-2. Which of the following bonds is cheapest to deliver?
Bond | Price | Conversion Factor |
1 | 94-8 | 1.0820 |
2 | 126-0 | 1.4245 |
3 | 142-4 | 1.5938 |
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