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Question Four. Bob Gibson has purchased a ten-year BBB rated corporate bond. Data on the corporate bond and various swaps are presented below. Bond Pricing

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Question Four. Bob Gibson has purchased a ten-year BBB rated corporate bond. Data on the corporate bond and various swaps are presented below. Bond Pricing Swap Pricing What return could Bob earn on a synthetic equity position? Explain your answer including the derivative positions taken to create a synthetic equity position

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