Coupon Rate (%) Maturity Bid Price Asked Price Asked Yield (%) 11/15/2027 2.250 110.0140 110.0200 0.734 11/15/2027 6.125 136.0200 136.0260 0.696 A.) Explain why the two Treasuries with identical maturities have different coupon rates. B.) Explain why the two Treasuries with identical maturities have similar asked yields even though the coupon rates are quite different. C.) Assume a dealer can choose to buy and then immediately sell $500,000 of par value for one of the two maturities. Which maturity should the dealer choose or is the dealer indifferent? Explain your answer.

Q: Can subparts 4 and 5 be answered on this problem

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.