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1) Consider a long forward contract to purchase a coupon-bearing bond whose current price is $960. The forward contract matures in 8 months and a

1) Consider a long forward contract to purchase a coupon-bearing bond whose current price is $960. The forward contract matures in 8 months and a coupon payment of $50 is expected in 2 months. The continuously compounded risk-free interest rate is 5% per annum. Suppose that the forward price is $955. How can an arbitrageur generate arbitrage profits? Explain in detail

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