The current quoted bond price is 137 calculate the quoted


It is February 27, 2018. The cheapest-to-deliver bond in a De-cember 2018 Treasury bond futures contract is an 8% coupon bond with a con-version factor of 1.2195, and delivery is expected to be made on December 31,2018. Coupons on the bond are paid on March 1 and September 1 each year. Theterm structure is flat, and the rate of interest with continuous compounding is 5% per annum. The current quoted bond price is $137. Calculate the quoted futures price for the contract.

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Financial Management: The current quoted bond price is 137 calculate the quoted
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