easy · FRM Part 1
In a Treasury bond future, if a bond has a conversion factor of 1.0000, what does this conceptually imply?
- The bond's coupon and maturity characteristics align exactly with the contract's notional standard
- The bond has zero accrued interest
- The bond is guaranteed to be the Cheapest-to-Deliver (CTD)
- The bond is currently trading at par in the cash market
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