It can trade higher especially as time goes by. For example, if "locking" HBD up for 30 years nets out a 35% rate, what happens if you buy a bond 20 years in? Obviously the HBD is paid out at redemption in 10 years but still pays a 35% annual rate, much higher than buying a new 10 year bond. Hence there would, I surmise, be a premium on the bond for the shorter timeframe until duration.

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