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Suppose that a 2-year, 5% annual coupon payment government bond can be bought or sold at a price of 103 (per 100 of par value).

Suppose that a 2-year, 5% annual coupon payment government bond can be bought or sold at a price of 103 (per 100 of par value). Is there an opportunity for coupon-stripping or bond reconstitution? Assuming a par value of $98100 million and neglecting transactions costs, calculate the profit opportunity.

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