I have seen similar questions asked although didn't really understand the answers. If i have bonds of similar duration why is it problematic for me to adjust for coupon differentials and for financing adjustment to see the RV between these issues?

When I say adjust I mean (from a coupon perspective): If I have a 2% vs 5% coupon bond, the 2% coupon bond would have a higher yield than the 5% coupon bond - some of which will be due to its lower coupon. Why can I not just take the spread of the coupons, 3% x term of trade/Dv01 to add-on to the 5% coupon bond yield (which lets say is rich vs the 3%).

From a repo perspective: Lets say the 3% bond is also trading special. Then surely buying that bond gives me an advantage. Therefore, richening the 3% bond vs the 5% to some extent. Again, can I not just adjust the yields of the 3% by calculating Repo Saving x term of trade / Dv01 and add this onto the yield to get a more fair comparison?




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