If a 16-Year 12 Percent Semi-Annual $100,000 T-Bond, Currently Yielding

Multiple Choice

If a 16-year 12 percent semi-annual $100,000 T-bond, currently yielding 10 percent, is used to deliver against a 20-year, 8 percent T-bond at 114-16/32, what is the conversion factor? What would the buyer have to pay the seller?

A) 1.158; $132,591.
B) 1.156; $115,600.
C) 1.150; $131,284.
D) 1.102; $124,200.
E) 1.000; $114,160.