gargi.adhikari
Active Member
In reference to; R19.P1.T3.Hull Study Notes
How do we arrive at the conclusion below...am a little stuck on this...any inputs/insights would be much appreciated ..
How do we arrive at the conclusion below...am a little stuck on this...any inputs/insights would be much appreciated ..
- If bond yields are less than 6%, this favors delivery of high-coupon, short-maturity bonds; i.e., bonds with lower durations.
- Similarly, If bond yields are greater than 6%, this favors delivery of low-coupon, long-maturity bonds; i.e., bonds with higher durations.
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