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Question
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.
E. 1.7263; $141,788.
Answer
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