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Maturity Coupon Rate (%) Bid Price Asked Price Asked Yield (%) 11/15/2027 2.250 110.0140 110.0200 0.734 11/15/2027 6.125 136.0200 136.0260 0.696 Assume a dealer can

Maturity

Coupon Rate (%)

Bid Price

Asked Price

Asked Yield (%)

11/15/2027

2.250

110.0140

110.0200

0.734

11/15/2027

6.125

136.0200

136.0260

0.696

Assume a dealer can choose to buy and then immediately sell $500,000 of par value for one of the two maturities. Which maturity should the dealer choose or is the dealer indifferent? Explain your answer.

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