Which bond is cheaper to deliver given T-Note futures price

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A 6-year bond with a 4% coupon sells for $102.46 with a 3.5384% yield. The conversion factor for the bond is 0.90046. An 8 year bond with 5.5% coupons sells for $113.564 with a conversion factor of 0.9686. (all coupon payments are semiannual). Which bond is cheaper to deliver given a T-Note futures price of 113.81?

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Reference no: EM131498948

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