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Which of the following bonds would be cheapest to deliver given a T-note futures price...

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Finance

Which of the following bonds would be cheapest to deliver given a T-note futures price of 89.4339? (Assume that all bonds have semiannual coupon payments based on a par value of $100.)

a. 8-year bond with 5.5% coupons and a yield of 5%

imageb.7.5-year bond with 8.5% coupons and a yield of 8%

c.8.5-year bond with 6% coupons and a yield of 6.5%

Compute the Macaulay duration for a 17-year zero-coupon bond having a yield to maturity of 5%.

a. 17.00

b. 15.99

c. 16.19

d.17.32

e. 16.84

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