Assuming Bond A is correctly priced and given the information in Exhibit 1, is Krishnan most likely correct that there is a mispricing?
- Yes, Bond C must be mispriced.
- Yes, Bond B must be mispriced.
- No, there is no evidence of a mispricing.
A is incorrect because Bond A is option-free while Bond C is putable and has a slightly shorter maturity than Bond A. Both of the ways Bond C differs from Bond A would imply a higher price than Bond A, which it has. Therefore there is no evidence that Bond C is mispriced.
老师这里我不太理解，为什么maturity 短会更贵？
