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4. (Use money market yields for discounting) A bond with no coupons sells today for $66, but will pay $75 in two years (its face

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4. (Use money market yields for discounting) A bond with no coupons sells today for $66, but will pay $75 in two years (its face value). If the one-year risk free interest rate is 3%, is arbitrage possible? (if yes, do you short or long the bond? explain)

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