4 ms·
This actually is a demonstration of an efficiently priced near zero risk asset. Your Canadian bond was probably priced in Canadian dollars, which have a near z
by outside1234 7y ago
This actually is a demonstration of an efficiently priced near zero risk asset.
Your Canadian bond was probably priced in Canadian dollars, which have a near zero risk of default (Canada can just print more dollars to pay it), so the pricing of these bonds should be such that it is largely inflation plus a vanishingly small premium for the black swan default.
$8 sounds about right.