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You have a portfolio with a large investment in the Carpathia EUR 6% 07 bond. This bond rarely trades. Indicative bid prices for small size trades are posted for the bond, but they are mostly from dealers wanting to express a willingness to make negotiated trades. However, the Carpathia USD 9 3/8% 11 bond is liquid. Its dollar return is uncorrelated with the EUR/USD rate. Which of the following statements is correct?
Choose one answer.