An 8-year $1,000 par bond pays a 7% semi-annual coupon. This bond is one of many deliverable bonds and has a conversion

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answerhappygod
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An 8-year $1,000 par bond pays a 7% semi-annual coupon. This bond is one of many deliverable bonds and has a conversion

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An 8-year $1,000 par bond pays a 7% semi-annual
coupon. This bond is one of many deliverable bonds and has a
conversion factor of 1.025. The risk-free is 6.0% and the
annual yield on the bond is 7.0%. The price of a 15-month futures
contract on this bond is $:
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