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do not use any previously asked Chegg questions please!!! Bond PV=68 Too 2 + O 1 3 2. e) Suppose you Annuity 1 Bederk purchase

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do not use any previously asked Chegg questions please!!!

Bond PV=68 Too 2 + O 1 3 2. e) Suppose you Annuity 1 Bederk purchase ZC and also contract to 1 year PV=47.6 20 20 20 > 2 3 6 1 reinvest proceeds from bond for the following 2 years 16.5% per year. Annuity 2 at PV=47.6 28 28 1 2 o 1 yearZc 405=90 What is arbitrage opportunity? Define Strategy? Define profit di = - 0.9 Retr, 1 O Teingstrat PAX 0.8 d = (H) dz=0.68 Bond PV=68 Too 2 + O 1 3 2. e) Suppose you Annuity 1 Bederk purchase ZC and also contract to 1 year PV=47.6 20 20 20 > 2 3 6 1 reinvest proceeds from bond for the following 2 years 16.5% per year. Annuity 2 at PV=47.6 28 28 1 2 o 1 yearZc 405=90 What is arbitrage opportunity? Define Strategy? Define profit di = - 0.9 Retr, 1 O Teingstrat PAX 0.8 d = (H) dz=0.68

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