Economically Irrational Pricing of 19th Century British Government Bonds

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Economically irrational pricing of 19th century British government bonds

British government bonds formed the deepest, most liquid, and most transparent financial market of the 19th century. This paper shows that those bonds had long periods, extending over decades, of anomalous behavior, in which Consols, the largest and best known of these instruments, were noticeably overpriced relative to equivalent gilts which offered the same interest rate and the same guarante...

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Economically irrational pricing of nineteenth century British government bonds

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ژورنال

عنوان ژورنال: SSRN Electronic Journal

سال: 2014

ISSN: 1556-5068

DOI: 10.2139/ssrn.2435399