The adjusted futures price is the market price of a bond futures adjusted by multiplying it by the conversion or price factor of a specific deliverable bond. This concept is important in bond futures trading, where different bonds can be delivered to meet the futures contract obligation. The conversion factor is used to normalize the different bonds, which can be delivered, so that they become comparable in terms of their value.

Key concepts:

• Cheapest-to-deliver: The bond that is cheapest to deliver at the futures price.
• Conversion factor: A factor used to adjust the market price of a bond so that it can be compared to the futures price.
• Notional bond: A hypothetical bond used as a reference for futures pricing calculations.

Understanding the adjusted futures price helps investors evaluate the most cost-effective way to meet their delivery obligations in the futures market.