header bg

Scan QR code or get instant email to install app

Question:

If the yield curve is downward-sloping, the no-arbitrage value of a bond calculated using spot rates will be:

A equal to the market price of the bond.
explanation

The value of a bond calculated using appropriate spot rates is its no-arbitrage value. If no arbitrage opportunities are present, this value is equal to the market price of a bond.

Related Information

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

*