Treasury markets and design synthetic trades

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Research the U.S. Treasury markets and design synthetic trades that replicate different types of U.S. Treasury instruments. Based on the pricing of the U.S. Treasuries and the synthetic instruments created, comment on what this implies of the pricing of the U.S. Treasuries. What does this imply about trading in the U.S. Treasury market? How efficient is the U.S. Treasury market? How do large U.S. budget deficits affect arbitrage opportunities in the U.S. Treasury market?

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Reference no: EM131180558

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