Question
What other truth does the equation reveal about the Treasury coupon bond? Check all that apply: when Treasury coupon bond's market price deviates from its
What other truth does the equation reveal about the Treasury coupon bond?\ Check all that apply:\ when Treasury coupon bond's market price deviates from its fair price, the market price and the fair price will swiftly converge again.\ when market and fair price are equal, YTM is the complex average of all Treasury spot rates (i.e., \ r\ 0\ ,\ 1\ ,\ r\ 0\ ,\ 2\ ,\ ...\ r\ 0\ ,\ T\ ).\ when market and fair price are equal, YTM is the arithmetic average of all Treasury spot rates (i.e., \ r\ 0\ ,\ 1\ ,\ r\ 0\ ,\ 2\ ,\ ...\ r\ 0\ ,\ T\ ).\ when Treasury coupon bond's market price deviates from its fair price, the market price and the fair price usually will not converge again.
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