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Q3. There are two zero-coupon bonds, A and B. Both bonds have a maturity of 1 year. The par value of A is $100 and

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Q3. There are two zero-coupon bonds, A and B. Both bonds have a maturity of 1 year. The par value of A is $100 and the price is $90. The par value of B is $50 and the price is $44. Develop an arbitrage strategy using bonds A and B (5 points)

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