Multiple Choice
Which of the following is an adequate definition of conversion factor?
A) A factor used to calculate the invoice price on a futures contract when a bond other than the benchmark bond is delivered to the buyer.
B) A factor used to calculate the invoice price on a futures contract when the benchmark bond is delivered to the buyer.
C) A factor used to calculate the invoice price on a futures contract when a bond other than the benchmark bond is delivered to the seller.
D) A factor used to calculate the invoice price on a futures contract when the benchmark bond is delivered to the seller.
Correct Answer:
Verified
Correct Answer:
Verified
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