The Matrix Pricing Method of Fixed Income Valuation
The matrix pricing is _most likely_ used to price a:
Incorrect.
The matrix pricing method is not appropriate when valuing a bond that is actively traded, as the market price is readily available.
Correct.
Since the required rate of return for investors is not provided and is unknown, the matrix pricing method is appropriate.
Incorrect.
The matrix pricing method for this fixed-rate bond is not needed, as this is a typically traded bond for which the analyst most likely has the market rate.
5-year bond that is actively traded.
15-year, fixed-rate bond that a company wishes to issue.
10-year, zero-coupon government bond with 3.55% coupon rate.