Everything else being equal, a T-bond with a high coupon has a
A) higher duration.
B) lower yield to maturity.
C) more distant first call date.
D) higher Chicago Board of Trade conversion factor.

Question

Quizplus · Accepted Answer

A T-bond with a high coupon has a higher Chicago Board of Trade conversion factor because the conversion factor adjusts for the coupon rate, making higher coupon bonds more valuable in futures contracts.

Everything Else Being Equal, a T-Bond with a High Coupon