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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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