Chuckrox

sebrock Wrote:
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> Because if the expected bond yield is below the
> forward rate, then you go long the forward instead
> to enhance yield. Much like a to hedge or not to
> hedge question. If the expected bond yield was
> above the forward rate, then you would just stick
> with the bond.



Could not you short the forward if the bond yield is above the forward?


To 1morelevel : there is no typo, the questions and ans is coming straight out of the source.