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Problem 4 . When borrow rate and lending rate differ, can the price be uniquely determined by the NoArbitrage principle? Please choose your answer and

Problem 4. When borrow rate and lending rate differ, can the price be uniquely determined by the NoArbitrage principle? Please choose your answer and explain.
Yes. No-arbitrage principle can uniquely determine the price.
No. It needs to be determined by external factors such as supply and demand in the market.
Problem 5. Fixed-income instruments are based on interest rates and are generally considered 'safe investment'. However, are they really risk-free? Please choose your answer and explain.
Yfs. They are risk-free.
No. They are exposed to certain risks.
Problem 6. If a bond has high yield to maturity, what does it imply about the quality of the bond? Please choose your answer and explain.
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