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Question 3: Yield Curve The following table summarizes the prices of riskless zero-coupon bonds with face value of $1,000: Maturity (years) Price (per $1,000 FV)

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Question 3: Yield Curve The following table summarizes the prices of riskless zero-coupon bonds with face value of $1,000: Maturity (years) Price (per $1,000 FV) 1 $980.56 2 940.35 3 902.67 A 3-year riskless bond with a 10% coupon and a face value of $1,000 is trading for $1,167.67. a. Is there any arbitrage opportunity? b. If so, how can you exploit it? If not, why is the market in equilibrium

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