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BOND PRICING ARBITRAGE QUESTION The following is the pricing information for 3 risk-free bonds. To exploit the arbitrage opportunity, we should (i)__ 1 FFPQ bond

BOND PRICING ARBITRAGE QUESTION

The following is the pricing information for 3 risk-free bonds.

To exploit the arbitrage opportunity, we should

(i)__ 1 FFPQ bond (Long or Short)?

(ii)__ DALO and NKDS bonds. (Long or Short)?

(iii) The arbitrage portfolio will generate $____ profit?

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