1.  Assume that you take a short position in a March T-bond futures contract. The settlement price of the cheapest-to-deliver (CTD) bond in March will be 70 and the conversion factor is equal to 1.4. The bond’s coupon payments are planned to deliver in May and November. What is the invoice price of this bond (face value = 100,000) if the accrued interest from November to March is equal to $1,600?
　　A.  $89,200
　　B.  $99,600
　　C.  $105,900
　　D.  $106,600
　　Answer: B
　　Invoice price is: clean price + accrued interest.