Two years ago, a 5-year Treasury note was issued and so it has three years left until
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Two years ago, a 5-year Treasury note was issued and so it has three years left until maturity. A newly-issued 3-year Treasury note is trading at a higher price than the two-year-old 5-year note.
a. What strategy would you implement to exploit the mispricing?
b. Why might such a strategy be risky?
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Related Book For
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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