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Obtaining discount factors. Given the following bonds, calculate the implied 1 - year and 2 - year discount factors ( $ 1 0 0 face,

Obtaining discount factors. Given the following bonds, calculate the implied 1-year and 2-year
discount factors ($100 face, annual coupon).
Show that there is an arbitrage opportunity with Bond C ($100 face, annual coupon). What is the
value of the arbitrage if you trade one unit of Bond C? Construct an arbitrage portfolio.
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