Multiple Choice
If a 12-year,6.5 percent semi-annual $100,000 T-bond,currently yielding 4.10 percent,is used to deliver against a 6-year,5 percent T-bond at 110-17/32,what is the conversion factor? What would the buyer have to pay the seller?
A) 1.1027;$110,531.
B) 1.2257;$135,478.
C) 1.8370;$253,830.
D) 1.3622;$163,339.
Correct Answer:
Verified
Correct Answer:
Verified
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