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One or more of the financial instruments in the table below are misprices. Complete columns 5, 6, and 7 of the table, indicating which instruments

One or more of the financial instruments in the table below are misprices. Complete columns 5, 6, and 7 of the table, indicating which instruments would be bought and which would be sold to exploit the arbitrage opportunity. Assuming a 360-day year, with no transaction costs associated with buying or issuing bills and bonds, calculate the single round-trip profit based on 1 bond.

Column

1

2

3

4

5

6

7

Instrument

Maturity (day)

Coupon (% p.a.)

Coupon frequency

Yield

(% p.a.)

Price ($)

Face value

Buy or sell?

Bill

180

-

-

6.50

Bill

360

-

-

7.00

Bond

360

8.0

Semi-annual

7.78

1,002.08

1000

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