In Satisfaction of a US Treasury Bond Futures Contract, the Short

question 8

Multiple Choice

In satisfaction of a US Treasury bond futures contract, the short position delivers a 15-year 9% bond instead of the standard bond. What is the conversion factor on this delivery? Assume the last coupon on the bond was just paid.

• A) 1.255
• B) 1.294
• C) 1.354
• D) 1.446

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Definitions:

Crystallized Intelligence

Refers to the accumulation of knowledge, skills, and experience that one gains over time, often assessed through vocabulary and factual information tests.

Neurological Factors

Elements that affect the structure and function of the nervous system, influencing behavior, cognition, and emotion.

Crystallized Intelligence

The ability to use learned knowledge and experience, which typically increases or remains stable with age.

Procedural Memory

A type of long-term memory that involves the unconscious memory of skills and how to perform tasks.