For Question B, Shouldn’t PAC IIB also be expensive because it has OAS only 20 bps compared to PAC IIA. PAC IIA has 4 yrs effective duration and PAC IIB has 6 yrs effective duration. Any help would be greatly appreciated.
Ignore. Got it
For Question B, Shouldn’t PAC IIB also be expensive because it has OAS only 20 bps compared to PAC IIA. PAC IIA has 4 yrs effective duration and PAC IIB has 6 yrs effective duration. Any help would be greatly appreciated.
Ignore. Got it