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7. (4 points) There are two one-year Treasury notes being traded in the market. Both are off-the-run and pay semi-annual coupons. One has a 2%

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7. (4 points) There are two one-year Treasury notes being traded in the market. Both are off-the-run and pay semi-annual coupons. One has a 2% coupon and a YTM of 5.4%. The other has an 8% coupon and a YTM of 5.3%. Do these yields imply an arbitrage strategy? Explain concisely why or why not. You need not do a calculation to answer this

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