16 research outputs found

    Valuation and discounted cash flows

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    Investment analysis and Lockheed Tri Star

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    Arbitrage in the Government Bond Market? (293-093)

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    Documents a pricing anomaly in the large and liquid treasury bond market. The prices of callable treasury bonds seem to be inconsistent with the prices of noncallable treasuries and an arbitrage opportunity appears to exist. Permits instructors to introduce the treasury market, the concept of creating synthetic instruments, principles of arbitrage, and institutional frictions in the bond markets
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