Can someone help me to solve these exercises? These exercises are related to Fixed income analysis courses

5. A bond trades on a trading platform with bid and ask quotes of 154.435 and 164.395, respectively. The situation implies an arbitrag opportlmity, but how exactly? Assuming an average trade size of EUR 20 million, convert the quotes irto dollar prices and oonzpute the dollar prot for the arbitrage trade. (Hint: Slide 2-3:!) 15. A 26-year-old student gradmtes as Licmciate of Medicine and is immdiately employed, earning a nmnthly salary of E5652. Her income tax rate is 38.2%. She is able to invest one-zh of her nmnthly rut salary at an cannot rate of 5%. She continues to invest on monthly basis until she retires at 63. a] How n11ch money she expects to have at retirement? b) All other things equal, compute the same value for a Doctor of Medicine who has to study for: additioral years without net income. Once graduated at 3!}, the Doctor will earn amonthly salary of 7025 with an income tax rate of 41.4%. c] Comparing the present values of we retirement funds in a} and b), what is we economic value of a doctorate? Should the Licenciate aim for a MD degree? 7. Two distinct bond issues are traded in the rmrket. Bond P pays an anrlml interest of 3.25% and costs 1G4, while Bond D pays (1.25% interest and costs 96. Both bond issues have one year to maturity and a par value of Int}. You are plamJing to buy mo bonds and hold them until nmturity, after which taxes are paid on the realized cash ows. The capital gains tax is 23%, while tax on interest income is only 25% a] Compute the before-tut: capital and interest income for portfolios {P, P}, {l}, D}, and {RD}. b) Compute the total amount of taxes paid on each portfolio. Remember that capital losses canbe deducted from capital gins. c] Which portfolio delivers the highest after-tax dollar income? How about after-tax return? ll-1': n:- F" nnI'II "' ii r." 1] Hun-r- "" ii i:l'. anillnn '1 nr'f "" ii IL'. inI Ii-inn 1 hurl"