I notice that 1-year interest rates are 1 percent below 2-year rates.We should borrow short-term, lend money
Fantastic news! We've Found the answer you've been seeking!
Question:
"I notice that 1-year interest rates are 1 percent below 2-year rates.We should borrow short-term, lend money long-term, netting a 1% gain in this trade."
Is this statement True or false assuming a world of efficient markets?
Posted Date: