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Conversion factor

• Rules set by the Chicago Board of Trade for determining the invoice price of each acceptable deliverable Treasury issue against the Treasury Bond futures contract.

• For the credit futures markets, it is the number that relates different coupons and acceptable deliverable maturities for delivery against the contract standard of an 8 percent coupon and the stipulated acceptable time remaining to maturity specifications. For the security markets, it is the contractual number that indicates how many shares a convertible security can be exercised into at any point in time.

 
 Embedded terms in definition
 Bond
Chicago board of trade
Contract
Convertible security
Convertible
Coupon
Credit
Delivery
Futures contract
Futures market
Futures
Invoice price
Invoice
Issue
Maturity
Point
Security
Shares
Time
Trade
Treasury bond
 
 Related Terms
 

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