CFA CFA General Coupon bonds and Arbitrage

Coupon bonds and Arbitrage

  • This topic has 2 replies, 3 voices, and was last updated Dec-17 by farlo001.
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    • arun80n
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      If two coupon bonds with the same maturity have different coupon rates and yields to maturity, is there a possibility to exploit an arbitrage?

    • Sophie Macon
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      If they are completely identical (i.e. same issuer, maturity etc) except with prices, yes!

    • farlo001
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      How exactly would you arb it?  Bonds are not an easy thing to short.

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