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Suppose a two-year zero-coupon bond has a price of $0.90 and a three-year zero has a price of $0.85. A bank allows you to borrow

Suppose a two-year zero-coupon bond has a price of $0.90 and a three-year zero has a price of $0.85. A bank allows you to borrow or lend at 4 percent, compounded once a year.

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Show two ways that you can make arbitrage profits from these prices.

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