1.You see two bonds. Both have two years to maturity. Both are 5% coupons. Bond A is...

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1.You see two bonds. Both have two years to maturity. Both are 5% coupons. Bond A is priced at 102.37 and Bond B is priced at 100.50 (full for both).

a)Why do you think this pricing gap exists and what does it mean for you?

b)What are you going to do to take advantage of this pricing difference assuming you find it acceptable?

Posted Date: May 19, 2024 01:10 AM

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1.You see two bonds. Both have two years to maturity. Both are 5% coupons. Bond A is...

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