Hi All,
Has anyone ever come across When - Issued Bonds (those securities which are traded pre-auction and only trade on a yield). If so, how would they be PRICED, pre-auction?
Once the auction is set and the coupon is set, then the pricing becomes straight forward, but how about pre-auction - we only have a yield and perhaps an assumed coupon but how we can get this pricing correctly/ more -accurately - any formulaic we can use?
Thanks v much
J!