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i need the answer quickly No Arbitrage Principle - Individual Securities Let a US T-bill with $1000 in cash inflow in 3-months time (no coupons)

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No Arbitrage Principle - Individual Securities Let a US T-bill with $1000 in cash inflow in 3-months time (no coupons) How much money to invest in a bank @5% p.a. to duplicate above cash inflow? Here, we assume that the risk involved in US T-bill and bank deposit is same In "normal market" Price of the T-bille PV of the bank deposit Such price is called the No Arbitrage Price (NAP) J What happens if the bill is trading @ $986 or $1000? Calculate the profit from arbitrage in each case

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