Treasury futures are delivered by a variety of bonds in a package of deliverable treasury bonds. When the contract expires for physical delivery, the deliverable treasury bonds are a series of qualified treasury bonds with different remaining maturities and different coupon rate. Because the coupon rate is different from the remaining maturity, it is necessary to determine the conversion ratio between various deliverable bonds and nominal standard bonds bound by futures contracts, which is the conversion coefficient. In essence, the conversion coefficient is the present value of all cash flows discounted by the deliverable treasury bonds with a face value of 65,438+0 yuan in the remaining term according to the target coupon rate of the treasury bond futures contract. The conversion coefficient is announced by the exchange when the contract is listed, and its value remains unchanged during the contract period.