Matrix pricing allows investors to estimate market discount rates and prices for bonds:
A) with different coupon rates.
B) that are not actively traded.
C) with different credit quality.

Question

Quizplus · Accepted Answer

Matrix pricing is particularly useful for estimating the prices of bonds that are not actively traded by comparing them with similar, more actively traded bonds.

Matrix Pricing Allows Investors to Estimate Market Discount Rates and Prices