Question
You can buy a 1 year UST today at 1%, or a 6 month bill today at 1% - which do you choose, and what
You can buy a 1 year UST today at 1%, or a 6 month bill today at 1% - which do you choose, and what are your implicit assumptions about the direction of short term rates over the next few months? What is the 6 month rate, 6 months forward called and why is it important?
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
