The price relationship of other deliverable bonds can be calculated from the price of treasury bonds futures. The conversion factor is the price relationship of other deliverable bonds that can be calculated from the futures price of government bonds. For the spot market, the prices of different bonds are linked. The price of treasury bonds futures is also linked to bonds with different maturities and coupon rate. On the maturity date of treasury bonds futures, there are often many bonds that meet the delivery standards in the spot market, and a conversion coefficient system is designed in the delivery of treasury bonds futures. Under the conversion factor system, each deliverable bond has its own conversion factor, and the delivery price of the deliverable bond can be calculated by the conversion factor. The conversion coefficient is determined by the exchange before each specific settlement H contract starts trading. During the whole trading period of a futures contract, the conversion coefficient will not change. The empty party must notify many parties of the actual bonds to be delivered the day before the delivery date. The price that the buyer should pay to the seller to receive the long-term treasury bonds to be delivered is determined by the following formula: price payable = contract size x settlement price of futures contract x conversion coefficient.