When the market price of a Treasury bond is higher than the price of the replicating portfolio
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Question:
When the market price of a Treasury bond is higher than the price of the replicating portfolio of TZCBs, a bond trader is motivated to perform a transaction called "reconstitution".
True
False
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date: