If the invoice price of bond A is 122,the invoice price of bond B is 95,the adjusted spot price of bond A is 127 and the adjusted spot price of bond B is 97,the better bond to deliver is bond B.

Question

Quizplus · Accepted Answer

The bond with the lower adjusted spot price is the better bond to deliver, as it has a higher yield. Therefore, bond B is the better bond to deliver with an adjusted spot price of 97, compared to bond A with an adjusted spot price of 127.

If the Invoice Price of Bond a Is 122,the Invoice