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15. Suppose a $100 face value bond of a US T-Bill yields 11.11% and an equivalent Italian bond yields 33.33%. You suspect the interest spread

15. Suppose a $100 face value bond of a US T-Bill yields 11.11% and an equivalent Italian bond yields 33.33%. You suspect the interest spread to narrow and invest accordingly. US T-Bills move to $95 and Italian move back to yielding 100%. How much do you make on each paired transaction? If you made 1,000,000 trades like this, what are your earnings/losses?

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