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Question
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.
Answer
This answer is hidden. It contains 104 characters.
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