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QUESTION 1 6 If the value of a Treasury bond was lower than the value of the sum of its parts ( STRIPPED cash flows

QUESTION

16

If the value of a Treasury bond was lower than the value of the sum of its parts

(

STRIPPED cash flows

)

you could profit by a

.

buying the stripped cash flows and reconstituting the bond.

.

buying the bond and creating STRIPS.

.

None of the options

.

selling the bond and reconstituting the bond.

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