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Assume that on March 16, the cheapest bond to deliver on the June T-bond futures contract is the 14s, callable in about 19 years and maturing in about 24 years. Coupons are paid on November 15 and May 15. The price of the bond is 161 23/32, and the CF is 1.584. The June futures price is 100 17/32. Assume a 5.5 percent reinvestment rate. Determine the implied repo rate on the contract. Interpret your result. Note that you will need to determine the accrued interest. Assume delivery on June 1

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