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Suppose a one-year zero-coupon bond with a 2750 SEK face value trades initially (today) for 2540 SEK. Answer the following: a. If there are no

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Suppose a one-year zero-coupon bond with a 2750 SEK face value trades initially (today) for 2540 SEK. Answer the following: a. If there are no arbitrage opportunities, what is the current risk-free interest rate? b. Now suppose that you are informed that the correct current risk-free rate is 7.13% and you realize the bond today is mispriced. Describe how you can achieve arbitrage

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