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Do these prices allow arbitrage? 4. (25 points) The table below shows the price and cash flow of four US government bonds. Bond Price today

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Do these prices allow arbitrage?

4. (25 points) The table below shows the price and cash flow of four US government bonds. Bond Price today Year 1 Year 2 Year 3 A 1058.824 1080 B 942.596 1000 1,012.261 50 50 1050 D 876.297 1000

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