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Basis of a bond formula

Description of the Basis of a bond formula

Formula for the calculation of a bond's basis.

Formula

\[ b=clnPrice_{bond}-(CF_{bond}\cdot rtPrice_{Fut}) \ \]

Symbols

\(CF_{bond}\ \)       
Conversion factor
\(clnPrice_{bond}\ \)       
Bond clean price
\(rtPrice_{Fut}\ \)       
Market price of the futures contract