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If the value of a Treasury bond was higher than the value of the sum of its parts (STRIPPED cash flows), you could profit by

If the value of a Treasury bond was higher than the value of the sum of its parts (STRIPPED cash flows), you could

profit by buying the bond and creating STRIPS.

  • not profit by buying the stripped cash flows and reconstituting the bond and profit by buying the bond and creating STRIPS.

  • not profit by buying the stripped cash flows and reconstituting the bond.

  • None of the options are correct.

  • profit by buying the stripped cash flows and reconstituting the bond.

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