Well, don't you think that the mkt price, i.e. the rate in this case, incorporates whatever asymmetries might exist?P. S. I thought I should mention that Antti Ilmanen's "Understanding the Yield Curve" series of papers talks about this and I can't recommend it highly enough, since it talks about all these things in some detail.
Last edited by Martinghoul
on January 21st, 2011, 11:00 pm, edited 1 time in total.