Primary dealers expect inflation to be 3% and they require a real return of 2.5%. If the 10-year bond being auction has a 3% coupon,
Primary dealers expect inflation to be 3% and they require a real return of 2.5%. If the 10-year bond being auction has a 3% coupon, will the price that goes with the stop-out yield be at par, at a premium to par, or at a discount to par?
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Authors: Thomas Ittelson
1st Edition
1632652072, 978-1632652072
